wt/tpr/m/375 - documents online home page

WT/TPR/M/375

21 November 2018

(18-7301) Page: 1/98

Trade Policy Review Body

11 and 13 July 2018

TRADE POLICY REVIEW

CHINA

MINUTES OF THE MEETING

Chairperson: H.E. Mr Eloi Laourou (Benin)

CONTENTS

1 INTRODUCTORY REMARKS BY THE CHAIRPERSON ....................................................... 2

2 OPENING STATEMENT BY THE REPRESENTATIVE OF CHINA ......................................... 4

3 STATEMENT BY THE DISCUSSANT ................................................................................ 8

4 STATEMENTS BY MEMBERS ........................................................................................ 12

5 REPLIES BY THE REPRESENTATIVE OF CHINA AND ADDITIONAL COMMENTS ............ 83

6 CONCLUDING REMARKS BY THE CHAIRPERSON ......................................................... 97

Note: Advance written questions and additional questions by WTO Members, and the replies provided by China are reproduced in document WT/TPR/M/375/Add.1 and will be available online

at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.

WT/TPR/M/375 • China

- 2 -

1 INTRODUCTORY REMARKS BY THE CHAIRPERSON

1.1. The seventh Trade Policy Review of China was held on 11 and 13 July 2018. The Chairperson, H.E. Mr. Eloi Laourou (Benin), welcomed the delegation of China headed by Mr. Wang Shouwen, Vice Minister, Deputy China International Trade Representative, Ministry of Commerce; the rest of the delegation; and the discussant, Ambassador Mr. Didier Chambovey (Switzerland).

1.2. The Chairperson recalled the purpose of trade policy reviews and the main elements of

procedures for the meeting. The report by China was contained in document WT/TPR/G/375 and that of the WTO Secretariat in document WT/TPR/S/375.

1.3. Questions by the following delegations had been submitted in writing before the deadline: El Salvador; Pakistan; Nigeria; Switzerland; Kazakhstan; Canada; Mongolia; United States; Mexico; Japan; Lao PDR; Australia; European Union; Ukraine; Hong Kong, China; Cambodia;

Colombia; Costa Rica; New Zealand; Argentina; Israel; Trinidad and Tobago; Singapore; Russian

Federation; Chile; India; Brazil; Norway; Chinese Taipei; and Korea, Rep. of. The following delegations submitted written questions after the deadline: Moldova; Egypt; Dominican Republic; Indonesia; Ecuador; Turkey; Thailand; Guatemala; Malaysia; the Philippines; Peru; and Saudi Arabia.

1.4. During its previous Review in 2016, Members had noted that while China's real GDP growth had slowed down since 2013, it had remained at a relatively healthy level of 6.5%-7.0% a year, supported mainly by strong domestic demand. They had also noted the importance of China to the

world economy, as the world's largest trader, as the main trading partner for many WTO Members, and as an increasingly important player in the multilateral trading system. Members had called on China to play a leading role in the WTO, commensurate with its trade weight.

1.5. At the time of the previous Review, Members commended China for pursuing structural reforms which aimed at allowing the market to play a more decisive role. They welcomed

initiatives such as establishing more Pilot Free Trade Zones and streamlining customs procedures. At the same time, Members observed that the State continued to play a very active role in China's

economy. Some Members were of the view that transformation in the Chinese economy would require a more market-oriented approach to investment and resource allocation.

1.6. Members noted that, for instance, barriers to foreign investment still persisted. They expressed concerns with respect to: prohibition of foreign investment in film production, distribution and exhibition; regulation of the circulation of foreign audio-visual content; standards for banking and insurance; and market access in telecommunications and financial services. Other

issues of interest to Members at the time of the previous Review in 2016 had included: a more open, predictable and transparent foreign direct investment regime; and stepping up China's protection of intellectual property rights. The advance written questions for this TPR covered many of the same issues.

1.7. Turning to the current review period, as noted in the Secretariat's report, China's economic growth had been moderating, prompting the authorities to address these issues by focusing on the quality and sustainability rather than the quantity of growth.

1.8. China adopted various changes to its trade and investment policies and measures since its previous Review, including a revision of the Catalogue of Industries for the Guidance of Foreign Investment and the expansion of Pilot Free Trade Zones. China continued to make efforts to reform its customs procedures; about one third of imports were now declared through single windows. China's simple average applied MFN rate was 9.3% as of December 2017; a tariff reform implemented in December 2017 reduced applied MFN tariffs for some 200 consumer products. Since January 2018, China has prohibited the importation of 24 kinds of solid waste.

1.9. China is an active participant in the multilateral trading system: it participated in the ITA negotiations and agreed to its expansion. It ratified the Trade Facilitation Agreement (TFA) in September 2015. During the review period, it expanded its network of regional trade agreements

by signing two new agreements.


- 3 -

1.10. The Chairperson turned Members' attention to some other issues they raised in their advance written questions for this TPR. These included: implications of the Belt and Road Initiative, measures to reduce overcapacity in certain industrial sectors, the regulatory framework for investment, import prohibitions, subsidy programmes and their notification, competition legislation and its enforcement, state-owned enterprises and their reform, government procurement provisions, protection of intellectual property, agricultural policies, reform of the

energy sector, new telecommunication legislation and policies including cybersecurity measures, and liberalization of financial services.

1.11. This meeting was a good opportunity for Members to discuss in greater detail issues of interest to them and of systemic importance to the multilateral trading system. The Chairperson was looking forward to a productive exchange of views.


- 4 -

2 OPENING STATEMENT BY THE REPRESENTATIVE OF CHINA (MR WANG SHOUWEN)

2.1. I was here exactly 2 years ago. I am happy to be back for the Seventh WTO Trade Policy Review of China.

2.2. Let me begin by expressing my appreciation to Mr. Chair and the WTO's Trade Policy Review team for your tremendous efforts for this review. My thanks also go to Ambassador Chambovey for assuming the role of discussant. Fairly impressed by the turnout of today's meeting, I want to

thank you all for coming and for your interest in China's trade policies.

2.3. The Government of China attaches great importance to this review. Joining me today are 30 colleagues from 14 government agencies of China, as well as our Ambassador Zhang Xiangchen and colleagues at the Mission here in Geneva.

2.4. In the past few weeks, my team has been working around the clock. So far, we have received 1,963 written questions from 42 Members. By yesterday, we had answered all 1,627 questions

submitted by 33 Members two weeks prior to this meeting. And we are working hard on the remaining questions submitted after June 28th. We will provide responses in one month from now according to the rule.

2.5. This year marks the 40th anniversary of China's reform and opening-up. In this process, China's accession to the WTO was no doubt a historic milestone. Two weeks ago, the Government of China published a white paper on China and the World Trade Organization. The paper gives a comprehensive account of China's fulfilment of its WTO commitments during its 17 years'

membership. It also expounds China's policies and propositions in advancing higher-level reform and opening-up. Hard copies of the white paper are available in this room. I hope it could help you with a better understanding of China and its efforts.

2.6. Since the reform and opening-up of China, especially since China's accession to the WTO,

significant changes have taken place both in China and the rest of the world. However, one thing remains unchanged, that is China's consistent pursuit of opening-up for cooperation and mutual benefit with all countries. While developing itself in economic globalization, China has created

important opportunities for the world economic growth, and delivered tangible benefits to its trading and investment partners.

2.7. Firstly, China has provided tremendous market opportunities for goods and services for the rest of the world. From 2001, when China joined the WTO, to 2017, China's imports of goods increased at an annual average growth rate of 13.5%. That is twice as high as the world average. Last year, China's imports of goods took up 12.8% of the global total. Between 2001 and 2017,

China's imports of services registered a yearly average growth of 16.7%, 2.7 times as much as the world average. Last year, China's imports in services accounted for close to 10% of the global total, with a trade deficit in services close to US$240 billion.

2.8. Secondly, foreign-invested enterprises (FIEs) in China have gained unprecedented opportunities of development. Last year, FIEs contributed to 44.8% of China's total foreign trade in goods. Their total sales revenue in China exceeded US$5 trillion in 2016, representing an annual average growth rate of 15.8% since 2001.

2.9. Take the US-invested enterprises in China as an example. Their sales revenue in China reached US$600 billion in 2016 compared with only US$45 billion in 2001.

2.10. The latest survey by the European Chamber of Commerce in China also indicated that business operations of European companies in China have continued improving in 2017. About 66% of the respondents reported higher revenue than 2016. And 93% of respondents achieved growth in earnings.

2.11. Thirdly, more and more Chinese companies have gone global for win-win cooperation with

their counterparts worldwide. This year marks the fifth anniversary of the Belt and Road Initiative

proposed by President Xi Jinping. In the past 5 years, the Government of China has vigorously promoted the Belt and Road Initiative and its alignment with the development strategies of various countries, based on the principle of achieving shared growth through joint consultation and


- 5 -

collaboration. By the end of last year, Chinese companies had established 75 overseas economic and trade cooperation zones in relevant countries, and these companies had paid over US$1.6 billion worth of taxes to the host economies and created 220,000 jobs for the local economies.

2.12. During the period under this review, the Government of China has taken a series of measures for trade and investment liberalization and facilitation. Let me approach these areas

from 5 perspectives.

2.13. We have significantly lowered import tariffs voluntarily and continuously. By the end of 2017, import duties on over 900 tariff lines had been reduced, with the trade-weighted average tariff rate falling to 2.4%. That is a very low level even compared with developed economies. President Xi Jinping delivered an important speech at the Boao Forum for Asia in April this year. Following that, we further cut tariffs of about 1700 tariff lines in May and July. For example, the

MFN rate on motor vehicles was reduced from 25% to 15%, and that on auto parts from 25% to 6%.

2.14. China will be holding the first China International Import Expo in Shanghai in November this year. This Expo is already oversubscribed by more than 100 economies. I would like to take this opportunity to renew our invitations to fellow Members, and warmly welcome you all to China to attend the Expo.

2.15. We have constantly expanded market access for foreign investors. On June 28th, just a few

days ago, China published the 2018 Special Administrative Measures for the Access of Foreign Investment (the Negative List), reducing the number of restrictive measures on foreign investment from 63 to 48.

2.16. Today, foreign financial institutions can invest in Chinese banks for 100% ownership. Foreign equity caps on securities, fund management, futures and life insurance companies have

been raised to 51%. By 2021, the financial sector will be thoroughly open, allowing 100% of foreign equity ownership.

2.17. Foreign equities cap on shipbuilding and aircrafts, as well as special vehicles and new energy vehicles have been also removed. Those on commercial vehicles and passenger cars will be lifted by 2020 and 2022, respectively.

2.18. China has pragmatically implemented the Trade Facilitation Agreement (TFA). The average time of customs clearance has been reduced to less than 20 hours for imports, and to less than 2 hours for exports. A standard version of international trade single window has been applied to all

ports nationwide. Talking about honoring the Agreement obligations, Category A measures have taken up 94.5% of China's commitments, and the only 4 measures under Category B will be implemented at the expiration of the 3-year transition period as scheduled.

2.19. China has also accelerated the construction of pilot free trade zones (PFTZs). In March 2017, seven new PFTZs were established in Liaoning, Zhejiang and other provinces. In April this year, the Government of China announced to support Hainan province in building a whole-island PFTZ, and in gradually exploring the development of a free trade port. On June 30th,

the latest version of PFTZ negative list for foreign investment was released. It covers broader areas for opening-up than the negative list for the nationwide application that I referred to earlier on.

2.20. During the period under this review, China has comprehensively deepened reform while opening further to the outside world.

2.21. We have annulled the business tax and replaced it with value-added tax (VAT), lowered the VAT rates and simplified its structure. We have advanced the supply-side structural reform, and

resolved over 120 million metric tonnes of crude steel and over 500 million metric tonnes of coal capacity in 2016 and 2017 combined.


- 6 -

2.22. With regard to streamlining administrative approval, the establishment of FIEs in sectors outside the Foreign Investment Negative List is subject to record filing rather than examination and approval. So far, over 96% of the establishment of FIEs is completed through record-filing.

2.23. With regard to IPR protection, Trademark law and Anti-Unfair Competition Law have been revised, and Copyright Law and Patent Law are under amendment to enhance the level of IPR protection. Besides, reform on trial of IPR cases has been stepped up. We have set up 10

trans-regional IPR courts in 7 provinces and a dedicated IPR protection campaign was launched for FIEs last year.

2.24. It is fair to say that IPR protection in China has tremendously benefited IPR holders. The royalties China paid to foreign right holders surged from merely US$1.9 billion in 2001 to US$28.6 billion last year. The 2018 White Paper by American Chamber of Commerce in China shows that among the biggest challenges facing the US-invested enterprises in China, IPR ranked

only the 12th place. It is no longer a major problem in their business operation in China.

2.25. China has been a firm supporter of the Multilateral Trading System (MTS). China has actively participated in all aspects of the WTO work, faithfully implemented its obligations, and striven to ensure the compliance of its domestic laws and policies with the WTO rules.

2.26. As for transparency, China's relevant legislations explicitly provide that draft laws, administrative regulations and rules shall be made available for public comments. The system of government gazettes has also been constantly improved. Since the creation of trade policy

compliance mechanism in June 2014, over 1,700 trade related policies have been reviewed for compliance.

2.27. As for notification, I would like to inform you that as a result of hard efforts over the past one and a half years, China had completed and submitted the subsidy notifications at central and sub-central government levels for 2015 to 2016 before this TPR meeting, satisfying the

requirement of Agreement on Subsidies and Countervailing Measures (ASCM). For the first time, policies in all provincial-level administrative regions were reflected in the sub-central subsidy

notifications.

2.28. As for dispute settlement (DS), we have taken an active part in the negotiations on improving the DS procedures, and supported the independence and impartiality of the panel and the Appellate Body (AB). We have also urged for an early launch of the selection process of AB Members. By April 2018, China has brought 17 disputes to the WTO and China has complained against in 41 cases. As the respondent, China respected the WTO rulings, and made adjustments

to its measures according to WTO rules. Up to now, none of the complainants have requested for retaliation against China.

2.29. The multilateral trading system is now confronted with severe challenges. We would like to call all WTO Members to resolutely defend the fundamental principles and core values of the MTS

including MFN, National Treatment and S&D treatment for developing Members, and to firmly stand up to trade bully, protectionism and unilateralism. We strongly appeal to break the impasse for the AB member selection process, and to tackle the systematic threats posed by such unilateral

actions as Section 232 and 301 investigations to the WTO.

2.30. We all agree that the WTO is not perfect and WTO needs to keep pace with the times. We suggest updating some of the WTO rules based on the above principles, while accommodating the concerns of the overwhelming majority of Members.

2.31. As the largest developing country, China has been providing support to other developing Members, and is ready to assume the international responsibilities commensurate with its level of development and capacities. By the end of last year, China had accorded zero tariff treatment on

97% of all tariff lines to 36 LDCs that have diplomatic ties with China.

2.32. In response to the Aid for Trade Initiative, China has donated US$3.2 million to the China

Programme since 2011, and contributed US$1 million to the WTO Trade Facilitation Agreement Fund. Roundtables on LDCs' accession to the WTO were successfully held in Cambodia and


- 7 -

Argentina last year. This year, the Roundtable will be held in Kazakhstan. We stand ready to work with all Members in assisting more countries and regions to join the big family of the WTO.

2.33. On the occasion of the 40th anniversary of reform and opening-up, China will pursue with firmness the vision of innovative, coordinated, green and open development for all. China commits itself to deepening reform on all fronts and opening up wider and deeper to promote common development across the world. Working together with other countries, China is committed to

building a community of shared future with extensive converging interests and a high degree of interdependence.

2.34. China will continue to support and safeguard the multilateral trading system. Joining hands with other Members, we will assume the responsibilities of our times, address problems emerging in the economic globalization, and enable various economies, social strata and groups of people to share the opportunities and benefits of economic globalization.

2.35. With that I conclude my statement. And the whole of the Chinese delegation would be all ears to the comments and questions from the discussant and all the Members.


- 8 -

3 STATEMENT BY THE DISCUSSANT

3.1. I wish to extend a very warm welcome to His Excellency Mr Wang Shouwen, Vice Minister for commerce, and the rest of the Chinese delegation. I would also like to express my personal appreciation for the remarkable work accomplished by Ambassador Zhang and his competent and knowledgeable team. I must also mention the excellent report drawn up by the Secretariat which provides a true wealth of information.

3.2. In my opening remarks as a discussant I wish to steer clear of the vicissitudes of the current trade policy climate. I want to make an effort to step back a little. This with the aim of getting a better sense of the overall picture. This is an attempt at taking a long-term perspective. As my task is limited to stimulating a discussion, I may be forgiven for using a rather broad brush.

3.3. We all know that China is a big country. It is impressive in many senses of the word. It still is

the most populous country in the world. It may not be the largest in terms of surface. But there is

hardly a nation which shares a common border with as many other nations as China does.

3.4. And China's neighbours were witness to a truly astonishing development. Since the late 1970s, China has undergone amazingly rapid economic and social development. Yes, it is a commonplace. Yet it is worth recalling that the Chinese economy has lifted more than 800 million people out of poverty. An achievement which must be put into perspective.

3.5. China's progress in reducing poverty is the biggest, the fastest and the most continuous the world has ever seen. This unique achievement was made possible by growth rates averaging 10%.

It took place against the backdrop of the largest scale economic expansion in history. At best, a few other economies have done likewise - but for a limited amount of time. And certainly not of the size of China. This significant increase in living standards has been a boon not only for the Chinese people. It has become an indispensable factor of stability.

3.6. The benefits of poverty alleviation in China were not confined to a region alone. Gradually, China's economic development went hand in hand with the People's Republic's integration into the world economy. Back in 2000, just before acceding to the WTO, China was the 7th largest trader

worldwide. Today, China competes with the United States for the top position among trading nations when imports and exports are combined. China's international trade has risen almost tenfold over the last two decades.

3.7. These are all striking figures and we are dealing with numbers in the realm of the superlative. The question now is whether this rise to growing prosperity can be sustained. Moreover, the question is whether China can continue to be a major driver of global economic and trade growth.

It should not be overlooked that China remains a developing country with per capita revenue levels clearly below those of other big trading nations. Income inequality remains high.

3.8. China's economic and trade position today has been obtained to a large extent by capital

accumulation. Relentless production investment and re-investment were key. But for quite some time now China has been faced with the problem of diminishing returns on previous investments. As merely swelling the volume of existing capital is not very efficient, other ways must be found.

3.9. This difficulty is compounded by another development that I cannot fail to note as a former

demographer. It has to do with China's demography and her ageing society. Ageing populations naturally save for retirement. These savings have been a tremendous source for Chinese capital accumulation. As – over time - the size of the working population will decrease, the volume of savings will eventually drop – thereby reducing an important domestic pool for investments.

3.10. Since the last review, many problems affecting an economy with an ageing population and a special emphasis on capital formation did not go away.

• Some industries continue to be afflicted by excess capacity. They may comprise companies

with low profitability that nevertheless manage to obtain credit or even subsidies. As has

been pointed out before, excess capacity may depress world market prices for some products and influence trade flows. At the same time, China has been engaged in lowering excess capacity.


- 9 -

• In addition, lending has grown rapidly both in the private and non-private sector even though the authorities have tried to curtail this trend. There is still a risk of overleveraging, especially in the less profitable parts of the economy. It is uncertain whether these credits can all be repaid upon maturity. The IMF has spoken of downside risks. Given the size of China, any risks to her financial stability would have international ramifications and no doubt affect trade as well.

• Yes, it is true. The current account surplus shows a declining trend. Yet, this process is largely due to an overall increase in investments relative to savings. And China's savings remain exceptionally high.

• The recent adjustment of the balance of payments could be consolidated through a transition from savings and investment to consumption. This transformation has already taken place – but to a degree only. China's trade patterns have shifted from external to

internal demand. Imports of services now grow faster than exports of goods. Even the domestic services sector has become more important compared to the traditional manufacturing sector.

3.11. The Chinese authorities are aware of these issues. Efforts are being made to wean the economy away from its emphasis on capital accumulation and investment. There is a determination to re-balance, to find a different type of equilibrium. As China's huge population is on the brink of shrinking, it is inevitable that high quantity will take second place. Quality will have

to come first. Labour intensity will have to be replaced by better productivity. Investment will have to be more targeted. Invention and innovation will be more important as only high-quality products can generate the necessary profits to improve the country's prosperity.

3.12. Let me now dwell on some developments which took place since the last review.

3.13. First, the Chinese authorities stress the importance they attach to FDI. In this vein, reforms

have been introduced which are intended to create a more conducive investment environment. Underlying these reforms is the promotion of a "negative list". Many foreign investments are now

simply subject to administrative filing rather than an official examination and approval. This step, which had been in the offing before the previous review, will be welcomed by many investors abroad.

3.14. Seen in isolation, yearly FDI inflows into China have been considerable. But investment outflows soared in 2016 when they exceeded inflows for the first time. Furthermore, statistics also show that FDI as a share of capital formation has been declining for two decades. One may

wonder, whether the attraction of more foreign direct investment would not be beneficial to the Chinese economy. It could alleviate the need to rely on domestic savings or easy credit to fuel capital investment. Driven by market forces, FDI would make capital allocation more efficient. Enhanced capital efficiency could in turn render the transformation towards a more consumption-oriented economy easier.

3.15. However, the legal framework for FDI in China remains complex. There are three types of negative lists and several categories of investments associated with different regimes. It will be

interesting to hear Members' assessment of the most recent changes and their potential to improve the consistency and predictability of regulatory practices.

3.16. Second, I would be remiss if I did not address the issue of intellectual property. In its report for this TPR, the Chinese Government stresses the objective to utilize intellectual property protection to promote innovation-driven development.

3.17. According to the Secretariat's report, China's laws with respect to IPR have not really been amended since the last review. But enforcement of IPR has been stepped up. This by way of closer

coordination within the administration. In addition to setting up specialized courts to strengthen judicial enforcement, customs officials have also been engaged in a campaign to fight against IPR violation.

3.18. Concurrently, innovation is promoted through a variety of overlapping initiatives. Innovation is a key objective in the current Five-Year Plan. Then, there is the "Made in China 2025" action


- 10 -

plan, which focusses on modern manufacturing. This is accompanied by the "Internet Plus" action plan, which seeks to combine digitalization with modern manufacturing including the use of industrial robots. This drive towards automation has already turned China into the world's biggest market for robots.

3.19. Up to now, the results, especially as far as the protection of IPR is concerned, have been mixed. China ranks among the world's largest issuer of patents, if not the largest. This can be

ascribed to an increase in R&D expenditure and a surge in patent filings by foreign direct investors. But it seems that only a fraction of patents reflects true innovation and that some innovations are not patented at all.

3.20. It has been claimed that this lack of patenting zeal may be attributed to a certain resignation on the part of companies. On the other hand, it is encouraging to note that, according to a recent survey by the European Chamber of Commerce, many European direct investors rate

China's IPR enforcement much more favorably now. On top of that, China's payments of licensing fees and royalties for the use of foreign technology have surged in the last few years. Yet, many companies still seem to be under the impression that patents do not provide the necessary protection against infringements. According to the Chinese State Intellectual Property Office, many companies filing for patent protection stated to have experienced violation of their rights. Overall, a majority of firms in China feel that better protection by patent rights would also spur more innovation. Members will surely address the issue of IPR in today's review as well.

3.21. Third, let me briefly touch upon a new issue, which has emerged since the previous review. As the digitalization of the economy progresses, so do cross-border data flows. Indeed, international trade is increasingly contingent upon the functioning of unimpeded data transfers. On top of that, research investment relies increasingly on a smooth exchange of scientific data across national borders.

3.22. This development poses new challenges. On the one hand, it is legitimate to protect data

privacy and to ensure cybersecurity. On the other hand, economic operators seek easy and

cost-efficient cross-border access to data. The regulators are sometimes faced with the challenge of striking a delicate balance between conflicting interests. China adopted a new law on cybersecurity at the end of 2016, which might entail a segregation of company data stocks with implications for business costs. Moreover, a new regulation passed in March of this year could equally curb the international exchange of research data as any transfer of such information out of China would need Government approval. Members may also want to express their views on this

question.

3.23. Fourth, I would like to highlight the fact that State involvement in the economy remains considerable. State trading and state-owned enterprises still play an important role. Members have raised many points on SOEs, expressing preoccupations when Chinese SOEs are directly competing with their products and services. Members are also seeking more information about the functioning of SOEs and the allegedly adverse trade effects resulting from regulations applicable to SOEs. These issues remain controversial. However, like my predecessor as discussant, I would also

like to encourage the Chinese authorities to bring about more transparency on the support provided to SOEs.

3.24. Finally, let me underline that it is impossible today to imagine multilateral cooperation without China's active participation. This is especially true when it comes to the WTO, where China's commitment is highly appreciated. China actively participates in WTO negotiations on traditional issues and considers that the WTO should also address new issues such as investment facilitation and Ecommerce. China's implementation of the trade facilitation agreement continues

unabated - now with category B commitments having been notified as well. An increasing amount of imports are being processed through the single window. Half a year ago, quite a few applied MFN tariffs were reduced. At the 2018 Boao Forum for Asia Annual Conference, China announced plans to further reduce import tariffs. As a participant in the Information Technology Agreement, China has agreed to its expansion. It intends to accelerate the negotiation process to join the Government Procurement Agreement. This picture could be further improved if China submitted

outstanding notifications as it is already singled out in the Secretariat's report.


- 11 -

3.25. I want to conclude by offering some personal observations. Over the last decades, China has reached the status of a major global economic power. But new power also means new responsibility. The white paper on China and the World Trade Organization issued on 28 June clearly indicates that China is ready to assume such responsibility. It states and I quote that "China commits itself to opening up wider and deeper, to promote common development across the world, providing other countries with more opportunities to share the benefits of China's

development". Implementing the Belt and Road initiative consistently with the tenets of the WTO system would contribute to the realization of this ambitious objective.

3.26. The stakes are high. So are the challenges faced by China in reconciling its responsibility as a global economic leader with domestic policy constraints. The way China addresses these challenges may affect a wide range of WTO Members. It is in the interest of the international community that global repercussions are factored into China's economic policymaking.

3.27. At the same time, China is transitioning to make its economic success story more sustainable. Given the size of the country and the complexity of the situation, this is something which may not be achieved overnight. This seems to be in keeping with one of the many wisdoms of one of China's most famous sons. Confucius is quoted as having said that "the man who moves a mountain begins by carrying a few stones". Quite a few stones have been moved already. Today's deliberations may provide indications as to the many other stones that should be moved next.

3.28. I am looking forward to our debate and to China's responses to questions and comments and I wish it all success in pursuing the vision of innovative, coordinated, green, and open development, as highlighted in the white book.


- 12 -

4 STATEMENTS BY MEMBERS

EL SALVADOR

4.1. To begin with, our bilateral relations with China are characterized by strong trade ties, chiefly on the import side, with China ranking second among our suppliers. On the export side, although there has been an increase over the past three years, El Salvador still has a number of challenges to overcome in terms of both diversification, with a single low-value-added product accounting for

80% of its exports, and in terms of the high trade balance deficit with China, which reached USD 1.4 billion in 2017.

4.2. Against this background, we are confident that trade relations between our two countries will grow still stronger in the future.

4.3. Turning to the current Review, it is important to stress that under the "New Normal", which is to be characterized by a somewhat lower and increasingly more service- and technology-oriented

economic approach, China's development has been positive and stable, with annual growth rates of 7%.

4.4. We also note that according to the Secretariat report, there have been growth rebalances from investment to consumption, from external to internal demand, and from manufacturing to services.

4.5. Moreover, the reasons for the consumption-driven growth include strong employment creation. All of this has contributed to reducing income inequality and poverty.

4.6. Similarly, we would like to highlight the structural reform currently being carried out in China under the 13th Five-Year Plan (2016-2020). This includes boosting private sector participation in the economy and the reform of state-owned enterprises, the adoption of market interest rates, the

promotion of competition, fiscal reform, and the reform of the financial sector.

4.7. At the same time, according to the Secretariat report the fiscal deficit rose from 3.4% of GDP in 2015 to 3.8% in 2016. This could be due to a decline in tax revenues owing to the VAT reform at the national level, and to the increase in spending on social programmes, employment, and

scientific and technological development for the benefit of urban and rural communities.

4.8. Similarly, total merchandise trade declined from 33.5% of GDP in 2015 to 31.2% in 2016. However, the report of the Chinese Government points out that in 2017, growth in merchandise trade outpaced expectations by hitting a six-year high, reversing the negative trend of previous years.

4.9. The share of services in GDP exceeded 50% for the first time in 2015, the greatest

contribution coming from e-commerce sales and tourism services imports.

4.10. Meanwhile, China continues to be one of the largest recipients of foreign direct investment, which focuses mainly on manufacturing, real estate, rental and business services, and wholesale and retail trade. China is also an important foreign investor, concentrating on leasing and business services, banking, the manufacturing industry, and wholesale and retail trade.

4.11. On the subject of tariffs, we note the greater openness to external markets following the reforms of December 2017, which saw a decrease in applied MFN tariffs for a total of

200 consumer products.

4.12. On the other hand, when it comes to subsidies, China has not submitted any notifications since 2014: in 2015, it implemented a major policy initiative known as the "China Manufacturing 2025" Plan which, as we understand it, includes pilot free trade zones with incentives for the new energy vehicles, integrated circuits and robotics sectors. We would be grateful if China would let us know when it intends to submit notifications for programmes implemented as from 2015.

4.13. The reports also reveal that State participation in the economy continues to be considerable,

with the State having a majority share in all but one of the 100 main listed companies.


- 13 -

4.14. We also note that compliance with intellectual property rights continues to be a major challenge for China, and we highlight the efforts made at the national level to strengthen both the administrative and judicial protection of IPRs and reinforce related long-term mechanisms, mentioned in the Government report.

4.15. On the subject of financial services, we note the opening of the Internet insurance market during the review period to both foreign and domestic operators. China also allowed foreign

insurers to engage in reinsurance in the Shanghai Pilot Free Trade Zone.

4.16. Another interesting development is the establishment of pilot free trade zones which, as we understand it, were first introduced in 2013. This is a major movement of the Chinese Government to further the reform and opening up under new development circumstances. El Salvador has submitted a number of questions to China concerning the pilot free trade zones and various incentive schemes, and we look forward to receiving their replies during this exercise.

4.17. Before concluding we would like to point to China's active participation in the multilateral sphere: it has contributed a number of important proposals in various WTO forums, notably on subjects relating to e-commerce, and has participated actively in groups in which we have common positions such as the MSMEs and the G-33.

4.18. We hope that under the leadership of China and other important Members of this Organization, we will be able to obtain concrete results for next year's Ministerial Conference.

4.19. It remains for me to wish China every success in this exercise.

PAKISTAN

4.20. Chair, Pakistan and China relations can be gauged from the fact that our people call each other "Iron Brothers".

4.21. The recent launch of "One Belt One Road" (OBOR) initiatives and the China-Pakistan Economic Corridor (CPEC) has marked a new era in Pakistan and China relationship.

4.22. Since Pakistan is early harvest part of the BRI—let me share our perspective on the CPEC.

4.23. China Pakistan Economic Corridor (CPEC), is linked with two large infrastructure projects

embracing the whole of Asia and designed to establish new trade and transport links between China, South Asia, Middle East, Central Asia and beyond. CPEC is a vital link between Silk Road Economic Belt and the 21st-Century Maritime Silk Road – the "One Belt One Road Initiative".

4.24. CPEC is a US$56 billion initiative, it has all the vital elements of economic development, like Transport, Highways, Railways, Ports, Urban Metero, industrial parks, IT; and last but not least Energy (considerable part of this is renewable energy).

4.25. CPEC is proving to be a game changer for Pakistan and the region, it will be a bridge between three engines of growth, China, South Asia and Central Asia, thus giving a stimulus to a deep regional economic integration and creating a trading block of 3 billion people, nearly half of the planet. Mind you these also include half of world's extreme poor. The deepening of economic integration will lower trade costs, essential for ending poverty.

4.26. Pakistan had a 4 to 5 thousand MW energy deficit in 2013, which is 25% of our total generation capacity, it was costing us 2% of GDP growth. This development deficit needed an

initiative of "Big Bang Scale", like CPEC. It is a set of 55 projects, 75% of funding is for providing 17000 MW of energy, over next ten years. This includes solar, hydro and wind energy projects. Many of these being foreign direct investment of Chinese private sector. But let me mention CPEC has created opportunities for everyone. The solar and wind energy projects have wind turbines and other components from Europe. Our solar projects have consultants for quality assurance from Germany. During 2016, exports from Europe to Pakistan increased by more than 20%, from

USD$4.2 billion to US$5.2 billion, primarily due to increased economic activity resulting from

infrastructure development through CPEC. In last three years, 10000 MW energy has been added to our National Grid. We no longer have compulsory shut downs for industry.


- 14 -

4.27. Hall mark of the CPEC is the North South Highway and Rail link, designed to link Arabian Gulf coast of Pakistan at Gwader in South, to North Western Chinese Region of Xinjiang and Kasghar, thus reducing the distance of China's North West from Arabian Gulf from 14000 KMs to 2500 KMs, thus transforming the trade cost for whole region.

4.28. We firmly believe CPEC will result in increase in trade, investment and financial flows, bringing peace and prosperity to the region and even beyond through enhancement in the

competitiveness of the economies and reduction in trade cost CPEC epitomises South-South trade and investment at its best.

4.29. During the review period, the Chinese economy continued to be a major driver of global economic growth as attested by some of its economic indicators: Real GDP grew by 6.7% in 2016 and is expected to be around 6.8% in 2017, inflation rate was at 1.6% in 2017, the share of services in GDP exceeded 50% for the first time in 2015.

4.30. In the services sector, e-commerce sales and tourism services imports have been particularly strong. Income inequality and poverty levels have declined.

4.31. China's current account surplus contracted from US$202.2 billion in 2016 which was equivalent to 1.8% of GDP, to 1.3% of GDP in 2017.

4.32. China's strong manufacturing sector continues to contribute significantly to its economy. Trade in goods for the year 2017 stood at 32.3% of GDP, from 33.5% in 2015 and 31.2% in 2016. China remains a net importer of agricultural products. Imports of agricultural products,

representing 6.3% of total merchandise imports in 2017 declined during the period from 2013 to 2016; on the other hand, exports of agricultural products increased in 2017.

4.33. China continues to be one of the world's largest recipients of FDI, with inflows on the rise for the past several years. Outward FDI has also been trending upwards for a number of years. China

remains a big investor in many developing countries across Asia and Africa, particularly in infrastructure projects.

4.34. Pakistan appreciates the Catalogue of Industries for the Guidance of Foreign Investment

(Investment Catalogue), developed by China. This catalogue remains the main instrument used to guide FDI in China and is revised periodically.

4.35. We greatly appreciate China's proactive role in WTO, apart from regular contributions in all committees and groups. China participates and leads the discussion in new and emerging issues.

4.36. China continues to grant unilateral trade preferences to LDCs. As of December 2017, duty-free treatment on 97% of tariff lines was granted to LDCs.

4.37. Pakistan commends China's continued efforts in reforming and harmonizing its customs

procedures. About one third of imports are now declared through single windows. China accepted the Agreement on Trade Facilitation in September 2015. It notified its Category A and B commitments. China does not have any Category C commitments.

4.38. The simple average applied MFN rate as of December 2017 is 9.3%, slightly lower than in 2013 and 2015. Almost all tariff lines are ad valorem. The average tariff is 14.6% for agricultural products and 8.5% for non-agricultural products. All of China's tariffs are bound.

4.39. Pakistan attaches great importance to the WTO's Dispute Settlement Mechanism and considers it a crown jewel of the Multilateral Trading System. Pakistan appreciates China's active participation and commitment to this mechanism. During the review period, China was involved in seventeen cases under the WTO dispute settlement system: in five cases as a respondent, in two cases as a complainant, and in the remaining ten cases as a third party.

4.40. Since China's previous Review, a noteworthy legislative development in the area of

competition policy has been the amendment to the Anti-Unfair Competition Law, which entered

into force on 1 January 2018. The new Law removes overlaps with the Anti-Monopoly Law.


- 15 -

4.41. China has continued to strengthen its IPR enforcement, both at the administrative and judicial levels. During the review period, the authorities issued various notices and measures with a view to strengthening China's capacity to protect and enforce IPR.

4.42. Regarding financial services, in June 2016 and June 2017, China issued two implementing regulations concerning the licensing of foreign bank card clearing institutions. In March 2017, China eased approval requirements for foreign-owned banks to supply certain investment banking

services in the country and to invest in domestic banking institutions.

4.43. China has been an active supporter of the Multilateral Trading System and its contribution to world trade cannot be understated. Pakistan appreciates that China actively participates in global economic governance, firmly safeguarding the multilateral trading system and opposing unilateralism and protectionism, promoting further the construction of free trade areas (FTAs), and continuously enhancing South-South Cooperation. China's efforts at inclusivity are also

appreciated.

4.44. In recent times, China has been subjected to unilateral and arbitrary imposition of trade barriers by certain trading partners. China, given the size of its economy and the magnitude of its contribution to global trade, is a linchpin of the global economy. Such measures can not only have strong repercussions for the global economic and trading system but also be detrimental for developing countries as a whole.

4.45. We are very thankful to the Chinese team in Geneva led by His Excellency Zhang Xiangchen,

who is a thought leader in Geneva, for their support for the MTS and WTO and their constant efforts in taking forward matters pertaining to world trade, with a focus on development. We are working together in areas such as FEDs, FIFD, MSMEs, in addition to the regular WTO committee work. The active involvement of China in global trade related matters helps the system to continue moving forward. From the reports, it comes out clearly that under the guidance of President Xi Jinping, China remains committed to the vision of building a new system of an open economy,

continuing to push forward liberalization and facilitation of trade and investment, not only within

China but globally.

4.46. In the end, we wish China a very successful and fruitful TPR.

NIGERIA

4.47. The reports before us today reflect the excellent work of the Secretariat and the Government of China. Both reports spelt out the key objectives of China's trade and economic policies since the last review. We believe that this review has fostered a better understanding of

China's economic environment and the challenges that lies ahead. China's growth and development is not accidental; it is a product of careful and well-thought-out planning and dogged implementation and commitment to the development of the country. Most analysts pointed to the 1978 reform as a watershed in the history of Chinese economy. The elements of the reform clearly

show that these are lessons for Nigeria and other developing countries in the quest for development. We submitted some questions and we are satisfied with the response to our questions. We may follow-up as appropriate.

4.48. According to the Secretariat report, during the review period, the Chinese economy continued to be a major driver of global economic growth, and accounted for around 30% of global economic expansion during the review period. However, real growth has been moderating as the economy adjusts to the "new normal", which implies more stable, though lower, growth rates of around 7% per year in the foreseeable future; growth rebalances from investment to consumption, from external to internal demand, and from manufacturing to services. The growth has resulted in rising rural incomes; which has resulted in declining income inequality and poverty levels. As a

consequence, China's GDP per capital has risen to US$8,124 in 2016. Nevertheless, despite the impressive growth and unprecedented poverty reduction, the income gap between the richest and the poorest remains large. It will be interesting to know how the Government of China intends to address this challenge, while noting the efforts by the Government's focus on the quality and

sustainability rather than the quality of growth. The same report noted that under the 13th five-year plan (2016-2020), the Chinese authorities intend to continue the process of structural

economic reform, which includes the promotion of private sector participation in the economy, as


- 16 -

well as the reform of SOEs, while keeping the preponderance of public ownership. Other measures mentioned in the plan include the promotion of competition, fiscal reform, financial sector reform to increase private capital participation in banking and expand the provision of financial services, and making the exchange rate and interest rate more market-oriented. It is encouraging to note from the Secretariat report that reforms have advanced across many areas, including the introduction of measures to reduce overcapacity, strengthen the local government borrowing

frameworks, including addressing the risks associated with the financial sector.

4.49. As pointed out in the Secretariat report, China submitted a number of notifications to the WTO. Nevertheless, some notifications those related to state-trading enterprises, domestic support, and subsidies provided by the central government are still outstanding. The Secretariat report also noted that the China's main laws regarding intellectual property rights (IPRs) have remained largely unchanged since its previous review. Enforcement of IPRs poses significant

challenge for China. However, during the period under review, the Chinese authorities issued

various notices and measures with a view to strengthening China's capacity to protect and enforce IPRs, while 11 additional specialized IPR courts were established by the Supreme People's court in various cities.

4.50. Nigeria is pleased to note from the Government Report that China is committed to the new vision of development and building a new system of an open economy, continue to push forward liberalization and facilitation of trade and investment, and make new ground in pursuing

opening-up in all fronts. It is also encouraging to note that China will spare no efforts in making globalization more open, inclusive, and balanced so that the accruable benefits are shared by all. Furthermore, we note the commitment of China to continue and deepen the reform agenda, advance law-based governance in every dimension, and keep promoting the modernization of China's governance system and capacity. It is also encouraging to note the commitment of China regarding trade facilitation. In this regard, we note with encouragement that China retains only four Category B measures and its category A measures accounts for 94.6% as far as the

implementation of the Trade Facilitation Agreement is concerned. We encourage China to fulfill its

promise to implement all category B measures, as notified, within the stipulated 3-year transition period. Furthermore, we note with encouragement that china has made considerable progress in the trail of IPR cases in recent years and the sustained efforts by the Government of China in cracking down on IPR infringements and counterfeits. We acknowledge the important role played by China in the multilateral trading system, both as an active participant and important

contributor. In this regard, we commended China for its generous contribution to the trade Facilitation Agreement facility, including recently signed economic cooperation agreement with the WTO, by providing US$8 million in support of the research and relevant activities of the WTO, with developing countries for capacity building in the international trade field.

4.51. In the light of the serious challenges facing the multilateral trading system, we appreciate the timely call by China on all WTO members, including China, to renew their commitment to the basic principles of the WTO, i.e. open, transparent, inclusive, Non-discriminatory, and rules-based.

More importantly, the collective responsibility of all WTO members, on the need to safeguard the role of the WTO-centered multilateral trading system, as a fundamental stabilizer in global

economic governance, and the firm resistance to unilateralism as well as protectionism, in order to contribute to the recovery and growth of the world economy, including common development and prosperity. We agree with China that the WTO should discuss new issues, with development implications, in order to respond to the expectations of the business community as well as to maintain the relevance of the WTO in global governance. In doing so, the discussions should aim

at multilateral results, adhere to the principles of openness, transparency and inclusiveness, bearing in mind that "one-sized" fits all approach may be inappropriate.

4.52. It is worthy of note that since 1978, China has pursued a strategy of gradual transition from a centrally planned to a market-based economy, with an "open-door" policy that has involved substantial liberalization of its international trade and investment regimes. China's rapid growth in its economy and its emergence as a global economic power plays an important role in the world

economy. The economy of China is the third largest in the world. Its global ranking has been impressive, the second largest trading partner in the world and the largest exporter and second largest importer of goods.

4.53. As pointed out in the Secretariat report, China's liberalization of trade and FDI has stimulated competition in the economy and contributed to the improved competitiveness of


- 17 -

domestic producers. The major challenge however, is the need to balance the short-term growth target and the long-term development goal, given the impact of the global financial crisis and catastrophic natural disasters. We share the view expressed in the Government report, that although China has made great achievements over the past 30 years in its reform and economic development, it cannot be ignored that China is still a developing country with a population of 1.3 billion. It is commendable that despite the challenges facing China, the government attaches

great importance to the south-south cooperation with other developing countries. This includes providing economic and technical assistance to help developing countries build their development capacity, promote economic and social development.

4.54. The current world economic slowdown presents new challenges for the Government. To overcome these challenges, China should be encouraged to provide additional impetus to trade and investment, including lowering effective tariff protection, reduction in the use of import

prohibitions as well as ensuring greater predictability to the foreign investment regime. China

should be commended for ensuring that the multilateral trading system remains at the core of its trade regime. We attest to the fact that China is an active Member of the WTO. This testimony was also acknowledged by the Secretariat.

4.55. At the bilateral level, Nigeria and China established formal diplomatic relations in February 1971. Agreements by both countries following the strategic partnership paved way for Chinese investment and development opportunities in Nigeria. The recent resurgence in the

relationship can be attributed to improve and deliberate mutual efforts at the highest political levels. The China principle of matching one province with one state in Nigeria, is a good attempt at the industrial development that will open and create more opportunities for Nigerian and impact positively on the industrial development of the economy. This is in the spirit of the Belt and Road policy of the Chinese Government, which if implemented properly will further enhance our close cooperation. Nigeria recently signed currency swap agreement with China, which allows the Central Bank of Nigeria and People's bank of China (PBoC) to among other purposes, provide

liquidity in their respective currencies, to facilitate and promote trade and investment across the

two countries. The Swap agreement is for a maximum of 15 billion Chinese yuan for N720 billion within a three-year tenor. The currency swap deal holds bright prospects to grow the Nigerian economy. Nigeria has always adhered to one-China policy in its relationship with China. We encourage China to improve on some of the imported Chinese goods imported into the country. Problems associated with unethical conduct resurfaces as a key obstacle in the Sino-Nigeria

relationship. Similar apprehension existed about the realities of technology transfer and job creation for Nigerian citizens. Despite these challenges, the Sino-Nigerian relationship continued to expand as a wide range of development projects were contracted to the Chinese. Furthermore, the launching of the Forum on China-Africa Cooperation (FOCAC) - a programme designed to boost economic and social development for Africa that consisted of four high-profile ministerial meetings further cemented the China-Africa relationship, particularly, in the areas of skill acquisition, capacity development, infrastructure and trade.

4.56. Before concluding, we wish to briefly highlight the following: first, since its accession, China has established an economic and trade regime, consistent with both its national conditions and

prevailing international rules and practices. Second, China is now the largest trading partner of over 120 countries and regions and in the next five years, Chin will import US$8trillion of goods, attract US$600 billion of foreign investment, and invest US$750 billion overseas, which will provide significant business opportunities for countries and regions. Third, China's economy is in a pivotal stage of transforming its growth model, improving its structure, and fostering new drivers of

growth. Fourth, China is accelerating its efforts to turn itself into an innovative country, deepen reforms in key areas, and taking tough steps to forestall and defuse major risks, through targeted poverty alleviation, prevent and control pollution. Fifth, China's continued efforts in encouraging technology exchanges as well as cooperation between Chinese and foreign enterprises, including the protection of lawful IPRs of foreign enterprises. Sixth, given the fact that events in China one way or the other impact on other WTO members, China should be encouraged to assume the

increased responsibility linked with being a major player in the multilateral trading system. Seventh, not the least, China's per capital income still ranks low, while nearly 30 million people are living under the national poverty conditions of China.

4.57. Finally, we believe this review exercise provides opportunity for China to critically analyze its approaches and make necessary adjustments or improvements in line with its national developmental priorities. As an important Member of the WTO, China, has remained a strong


- 18 -

supporter of the multilateral trading system. In this context, it would be remiss of me not to mention the constructive and proactive engagement of the delegation of China in Geneva, under the dynamic leadership of Ambassador Zhang Xiangchen and his hard-working team. We thank China for the prompt response to our questions and the questions posed by other Members. Nigeria would continue to work closely with China and the rest of the membership, as we approach MC12 and beyond. We wish China a successful review exercise and congratulate the entire

delegation for their engagement.

SWITZERLAND

4.58. Switzerland and China enjoy close and strong economic relations. These relations go back in time and have a somewhat unusual history. It was a Swiss company which towards the end of the 1970s embarked upon the very first industrial joint venture of a foreign business with a Chinese state-owned enterprise at a time when China was only beginning to open-up. Since then, our

steadily growing trade relationship has been accompanied by a myriad of joint initiatives. A Memorandum of Understanding regarding the protection of intellectual property rights was concluded in 2007. Then in 2013, Switzerland was the first continental European country to sign a bilateral free trade agreement with China.

4.59. Swiss trade with China has grown more dynamically than Swiss trade with other trading partners. China now is Switzerland's most important partner in Asia and the third most important trading partner worldwide, right after the EU and the US. In 2017, Swiss exporters sold goods

worth 24 bio. $ to China. Swiss imports of Chinese goods amounted to 13 bio. $. Switzerland sells mostly precious metals, pharmaceuticals, machines and watches to China, whereas China supplies Switzerland with consumer electronics, machines, and textiles.

4.60. China has also become our most important foreign direct investment destination in Asia. There are almost one thousand Swiss companies with a combined investment stock in excess of 21 bio. $ and employing well over 180'000 people in the country today.

4.61. These figures bear testimony to the persistent interest of Swiss operators in China's

economy. It is striking to note that an increasing number of Swiss businesses have started to invoice their China business in the local currency. According to a recent survey, almost one third of exporters now seem to show a preference for invoicing in Renminbi. There may be a multitude of reasons for doing this. But it is also a sign of confidence in the Chinese economy.

4.62. This is not to say that the Chinese economic model is devoid of difficulties. To simplify things, these problems all have – to varying degrees – to do with the position of the state in the

economy. The state is either too preponderant and its function ought to be cut back. To us, the SOEs are a case in point. Or, the presence of the State may fall short, in which case its influence ought to be stepped up. This might be the case when it comes to competition policy and the protection of IPR.

4.63. An outside observer cannot help but be struck by the fact that in virtually all publicly listed Chinese companies, the state remains a majority shareholder. Whilst it must be recognized, that there have been various reform efforts aimed at making SOEs more efficient, it cannot be denied

that quite a few such enterprises continue to suffer from modest productivity and questionable profitability.

4.64. Exposing them more fully to the free play of market forces and reducing the role of the state would give them a competitive boost. Moreover, it would help create a level-playing field with foreign competitors. Within this context, we would also like to encourage the Chinese authorities to open-up additional sectors of the economy for FDI to foster competition.

4.65. An area in which the state no doubt has an important role to play is the enforcement of

competition policy. It takes a strong state to assume the role of an impartial arbiter who ensures an equal treatment in order to allow businesses to compete under fair conditions. We have taken note of China's recent amendment to the Anti-Unfair Competition Law. It might be challenging for

the Chinese authorities to pass just and even-handed judgments in relation to competition law. This, because the Chinese state with its active role in the economy could be both judge and participant in a particular case.


- 19 -

4.66. In many ways related to competition policy is the protection of intellectual property rights. Once again, this is an area, in which a strong state enforcing the legal rights of stakeholders is of paramount importance. We acknowledge that China has redoubled its efforts to enforce IPR on many fronts. Nevertheless, even Chinese companies still point to the existence of violations or infringements.

4.67. In any event, Switzerland welcomes the comprehensive efforts by China to implement test

data protection in a transparent and equitable manner that shall provide predictability, transparency and legal certainty to all stakeholders. In particular, we welcome the proposal for 6 years of test data protection for innovative drugs and for 12 years of protection for biological products in the current draft for implementing rules for pharmaceutical data exclusivity.

4.68. Before concluding, we would like to commend China for its commitment to fossil fuel subsidy reform. It is noteworthy that China was one of the first countries to undergo the G20 peer review

of its fossil fuel subsidies.

4.69. We thank China for having provided comprehensive replies to all the questions submitted in writing and wish its distinguished delegation a successful outcome of this trade policy review.

KAZAKHSTAN

4.70. Through implementing effective economic development policies China has maintained high GDP growth over the review period. The country is successfully transforming its economy from export-oriented to the one based on services sector and domestic consumption.

4.71. Kazakhstan commends China's efforts in implementing more proactive import policies and enhancing trade facilitation. Furthermore, Kazakhstan welcomes the various measures undertaken by the Government of China, which are aimed at improving the investment climate in the country.

4.72. I would like to wish the Government of China a successful completion of the 13th five-year plan.

4.73. China is the 3rd largest trading partner of Kazakhstan after the European Union and the Russian Federation. In 2017, annual trade turnover with China exceeded US$10 billion with

Kazakhstan's exports totalling US$5.8 billion and imports figures reaching US$4.7 billion. Kazakhstan major export items to China were mineral products, chemical industry products and metals. Imports from China included textiles, machinery, equipment, metals, minerals, ceramics, glass and consumer goods.

4.74. In recent years, our countries have actively developed cooperation in the energy sector, covering oil and gas, nuclear power and renewable energy.

4.75. China has greatly contributed to the diversification of the Kazakhstan's economy. As of

31 December 2017, China's commutative investments in Kazakhstan amounted to US$42.8 billion over the last 25 years (Chinese sources), US$15.5 billion since 2005 (NBRK). Last year, China's direct investment nearly reached US$1 billion. Chinese investments in Kazakhstan are mainly allocated to transport, warehousing, oil and gas, construction and mining industries.

4.76. Since 2005, Kazakhstan has invested over US$500 million in China. In 2017, direct investment in China totalled US$38.6 million.

4.77. Within the framework of industrial and investment cooperation between Kazakhstan and China, more than 50 joint projects for a total amount of more than US$26 billion are in the pipeline. These projects cover such areas as automotive, agricultural, chemical, mining, oil and gas, construction, metallurgy, light industry, productions of mineral fertilizers, energy, transport and logistics, new technologies.

4.78. Since 2013, both our countries are conscientiously engaged in the implementation of China's

large-scale initiative – the construction of the Economic belt of the Silk Road within the framework

of the "One Belt and One road" project. Over the past 4 years, this project has become a platform


- 20 -

for an open and inclusive cooperation, a global public product that enjoys wide support of the international community.

4.79. In addition to bilateral cooperation, active integration processes between the countries of the Eurasian Economic Community and the People's Republic of China are also taking place. On 16 May 2018, an agreement on trade and economic cooperation between the member states of the EAEU and China was signed. Its purpose is to create a basis for further development of

economic relations between the countries.

4.80. I would also like to highlight China's recent accession to the Convention on International Transport of Goods Under Cover of TIR Carnets. This step has facilitated cross border trade and the use of TIR by China has the potential to increase the total trade volume among China and other Belt and Road countries by up to US$13.6 billion, representing 1.4% of China's total volume of trade exports.

4.81. Kazakhstan being one of the largest grain exporting countries, is very much interested in realizing its export opportunities on China's market. In this regard, we urge China's Government to bring more transparency and predictability to its wheat TRQ administration processes.

4.82. In closing, I want to emphasize once again that the People's Republic of China is one of the most important strategic partners of Kazakhstan. We are confident that there is a lot of potential to further develop our mutually beneficial trade and economic cooperation in the years to come.

4.83. I would like to wish the delegation of China a successful Trade Policy Review.

CANADA

4.84. Since joining the WTO in 2001, China has undertaken major reforms in order to meet its WTO obligations, encourage its economic growth and expand its participation in international

trade. It is evident that these efforts are leading to impressive economic results. However, it is equally evident that China still has challenges to address.

4.85. Canada took careful note of President Xi Jinping's remarks at the Bo-Ao Forum for Asia on 10 April 2018. In his speech, President Xi identified four areas where China intends to pursue

further reforms: broadening market access; creating a more attractive investment environment; strengthening the protection of intellectual property rights; and taking the initiative to expand imports. We appreciate that China recognizes its role as a leading economy, and has identified an appropriate agenda for specific reforms. However, it is essential that China match these words with further action in the near term.

4.86. TPRs rely on open and frank dialogue between peers, so Canada will take the opportunity

presented by this TPR to offer its perspective on aspects of China's trade policy that are important to Canada. We encourage China to adopt the alternative timelines for written questions and

answers for its next TPR. This would be a clear demonstration of China's commitment to transparency and the TPR process.

4.87. We recognize China's active involvement in the WTO and encourage China to conduct its trade policies within the WTO framework. Doing so will assist with China's transition to a market economy, which is a transition that we hope will continue in earnest. We commend China for its

strong track record of compliance with its notification obligations under the Trade Facilitation Agreement and urge it to comply with other notification obligations, particularly with respect to subsidies. For instance, China's last notification for agriculture domestic support was in 2010 in spite of the extensive support that China provides to its agricultural producers. And in the Fisheries Subsidies' negotiations, information regarding China's subsidies would help advance the discussions.

4.88. With regard to China's participation in WTO plurilateral agreements, we understand that

President Xi also stated at the Boao Forum that China is seeking to quickly accede to the revised

WTO Agreement on Government Procurement. Canada welcomes this announcement. As this process has been ongoing for a number of years, we look forward to hearing more from China about its plans for GPA accession. We also encourage China to participate in the WTO's joint


- 21 -

initiatives on e-commerce, investment facilitation, and MSMEs, and to sign onto the Joint Declaration on Trade and Women's Economic Empowerment.

4.89. With respect to non-tariff barriers, foreign companies operating in China continue to express frustration with China's inconsistent and unpredictable regulatory practices and standards. We raised this point during China's 2016 TPR and we are disappointed that this problem persists. The web of rules that foreign companies must navigate through in order to export to and operate in

China creates lengthy and difficult processes and high costs. This limits the ability of companies to effectively access the Chinese market. Canadian companies are committed to ensuring compliance with Chinese laws and regulations, but are frustrated with the lack of regulatory transparency and the inconsistent application of rules to their goods and services in China. Canadian exporters have also expressed concern with inconsistent SPS testing regimes. Furthermore, we have also heard from Canadian businesses that, depending on the location where goods enter the Chinese market,

Canadian exporters can be expected to comply with different regulations.

4.90. Effective protection and enforcement of intellectual property rights is another area of concern that is cited by Canadian stakeholders and is critical to China's transition to an innovation-driven economy. We encourage China to continue its efforts to increase the predictability and effectiveness of its intellectual property regime in order to address ongoing concerns in areas such as registration, infringement, and counterfeiting.

4.91. Canadian companies have also expressed significant concerns regarding the rules governing

the conduct of Chinese state-owned enterprises (SOEs). In particular, our companies have noted the difficulties associated with competing against SOEs in China, in third country markets, and even potentially in Canada, when the Chinese government accords them preferential treatment. Canada is encouraged by the recent reforms to the Chinese banking sector. However, we also understand that Chinese SOEs in certain sectors continue to benefit from market distorting government financial support, a practice which distorts the market at the expense of foreign competitors.

4.92. We recognize that China is taking steps to open its market and create a more attractive investment environment for global companies and investors. We note that China has recently eased certain restrictions in its Foreign Investment Negative List. Further progress in addressing key areas of concern to foreign investors, including joint venture requirements, local content requirements, technology transfer requirements, and foreign equity caps would help attract investment, spur high quality economic growth and innovation for China, and reinforce China's

pledge against protectionism.

4.93. We note China's recent announcement of tariff reductions affecting products in certain sectors, such as imported automobiles, agriculture and agri-food, as well as further services and financial sector liberalization planned in 2018. We look forward to further details on how and when these reductions will be implemented.

4.94. As an increasingly important player in the global economy, we encourage China to continue

to take a balanced and inclusive approach to trade policy. Such an approach will create the

conditions for the benefits of trade to be shared more broadly and ensure that governments around the world do not derogate from their global responsibilities and obligations in the pursuit of zero-sum economic growth.

4.95. In this regard, Canada encourages China to address the environmental and labour challenges that have accompanied rapid economic development in recent years. We are encouraged by President Xi's statement during the 19th National Congress on October 18, 2017, that China "will pursue open, innovative, and inclusive development", and will be "promoting green

development". Canada recommends that China link these broad initiatives to its approach to international trade. One pragmatic step that China could take is to ensure that its free trade agreements meaningfully address these important issues through the inclusion of binding obligations on labour and environment.

4.96. In conclusion, we look forward to learning more about China's continuous efforts to undertake meaningful economic reform, and further integrate into the global trading system. China

must take quick and decisive actions in order to address the challenges faced by foreign


- 22 -

companies in its market. Action is also needed in order to avoid a further escalation of current trade tensions, which threaten the global economy. Based on China's impressive economic achievements to date, Canada considers China has both the capacity and the ability to overcome these challenges; what is required now is a demonstration of Chinese willingness to do so through positive actions.

MONGOLIA

4.97. Mongolia and China enjoy longstanding bilateral economic ties, supported by strong trade and investment flows. Over the last two decades bilateral trade between two countries has been growing and reached US$6.6 billion last year, which is the increase by 35% over the previous year. We attach great importance to the development of bilateral trade and economic cooperation with China and expect our bilateral trade and economic relationship to further strengthen within the framework of the comprehensive strategic partnership.

4.98. Mongolia appreciates China's contribution in the WTO forum and negotiations. Mongolia expects China, as a key player in the multilateral trading system, take a more leading role and make an even greater contribution to the multilateral trading system. As a landlocked country, Mongolia highly appreciates China's efforts in the implementation of the Trade Facilitation Agreement.

4.99. We are pleased to see China's progress to the new vision of development and building a new system of an open economy, pushing forward liberalization and facilitation of trade and investment

as well as its reforms to advance law-based governance in every dimension.

4.100. We believe that China's initiative in achieving shared growth through discussion and collaboration of countries along the Belt and Road (BRI) has a significant potential to boost trade and economic cooperation between the countries and regions.

4.101. We thank the delegation of China for submitting the replies to our questions. However, we would like to make further clarifications. Mongolia would greatly appreciate if China could provide further information on the structure, organization and competences of provincial-level committees

on trade facilitation, especially of those provinces bordering with Mongolia.

4.102. Mongolia would like to express appreciation to the delegation of China and the Secretariat for their hard work in preparing for this TPR.

4.103. We wish a very productive and successful Trade Policy Review of China.

UNITED STATES

4.104. Given the importance of China to the future of the World Trade Organization (WTO), I

believe that we should be frank and direct in discussing China's role as a WTO Member and the

nature of its trade policies and practices.

4.105. China's failure to fully embrace the open, market-oriented policies on which this institution is founded must be addressed, either within the WTO or outside the WTO. Given China's very large and growing role in international trade, and the serious harm that China's state-led, mercantilist approach to trade and investment causes to China's trading partners, this reckoning can no longer be put off. If the WTO is to remain relevant to the international trading system, change is

necessary.

4.106. When China acceded to the WTO nearly 17 years ago, WTO Members expected that the terms set forth in China's Protocol of Accession would permanently dismantle existing state-led, mercantilist policies and practices that were incompatible with an international trading system expressly based on open, market-oriented policies and rooted in the principles of non-discrimination, market access, reciprocity, fairness and transparency. But those expectations have not been realized. Instead, China has used the imprimatur of WTO membership to become

one of the WTO's largest traders, while largely retaining its state-led, mercantilist approach to trade and investment, to the detriment of the United States and other WTO Members and their industries and workers. This situation is actually worse today than it was five years ago. The


- 23 -

state's role in China' economy has increased, as have the seriousness and breadth of concerns facing foreign companies seeking to do business in China or attempting to compete with Chinese companies in their home markets.

4.107. To be clear, the United States does not object to the Chinese Government's desire to guide and support domestic industries through the issuance of five-year plans and other similar efforts. Other WTO Members also seek to help their industries develop. However, China's overall approach

is materially different, as China's industrial policies typically go well beyond traditional approaches to guiding and supporting domestic industries. China provides massive, market-distorting subsidies and other forms of state support to its domestic industries, which too often leads to severe excess capacity, and at the same time it actively seeks to impede, disadvantage and harm the foreign competition. China helps its domestic industries by skewing the playing field against imported goods and services and foreign manufacturers and services suppliers in myriad ways, such as

market access limitations, investment restrictions and massive financial support. It also employs

preferential treatment for state-owned enterprises and other favored Chinese companies, discriminatory regulatory requirements, unique national standards, technology transfer requirements, inadequate protection and enforcement of intellectual property rights, cyber theft, overly broad and discriminatory cybersecurity measures, cross-border data restrictions and data localization requirements, and the use of competition law for industrial policy purposes, among many other ways. Exacerbating this situation is the abuse of administrative licensing and approval

processes by Chinese government officials, China's incomplete adoption of the rule of law, a lack of an independent judiciary and inadequate transparency.

4.108. It is clear, moreover, that the WTO currently does not offer all of the tools necessary to remedy this situation.

4.109. The WTO's dispute settlement mechanism is not designed to address a situation in which a WTO Member has opted for state-led trade and investment policies that prevail over market forces and that pursues policies guided by mercantilism rather than global economic cooperation. Rather,

it is narrowly targeted at disputes where one Member believes that another Member has adopted a measure or taken an action that violates a WTO obligation. While some Chinese measures have been found by WTO panels or the Appellate Body to run afoul of China's WTO obligations, fundamental problems remain unaddressed as many of the most significant Chinese policies and practices are not directly disciplined by WTO rules or the additional commitments that China made in its Protocol of Accession.

4.110. Meanwhile, there is no clear path toward the negotiation of new rules to address the unique problems posed by China's state-led, mercantilist trade and investment regime. As we all know, the WTO is a consensus organization, and the prospects for negotiating strong and effective new rules are low, and in any event they would not be timely in addressing the serious harm currently being suffered by WTO Members. China's claim to developing country status is also not helpful. The United States would remind Members that China's Protocol of Accession questioned China's claim to be a developing country and expressly denied China's right to self-elect

developing country status under several of the WTO agreements, yet China persists in claiming to

be a "developing Member" in the context of every future negotiation at the WTO. Similarly, unhelpful is China's claim to be a "recently acceded Member" after nearly 17 years of WTO membership.

4.111. The United States notes that, for many years, it tried to work cooperatively with China through extensive bilateral engagement. As we look back on that engagement, we find no indication that China has been prepared to make the fundamental changes that would be

necessary to bring its trade and investment regime into alignment with the regimes of other WTO Members.

4.112. Going forward, the best solution is for China finally to take the initiative to fully and effectively embrace open, market-oriented policies. China knows what needs to be done, and we urge China to take that route.


- 24 -

MEXICO

4.113. Mexico's trade and investment relationship with China is extremely dynamic and of the utmost importance for our country. China is Mexico's second trading partner: trade between the two countries reached USD 81 billion in 2017, with foreign direct investment resulting in China's having shares in more than 1,000 companies in our country.

4.114. China's economic development over the past decades has been remarkable, and is

reflected in numerous economic indicators. Not only is this good news for Mexico, but for the rest of the world as well, given the opportunities that it opens up at the global level.

4.115. China has the potential for strong economic growth in the medium term, and according to an assessment made by the IMF in 2017, this would require speeding up the reforms needed to address a number of significant economic challenges. It needs to stimulate domestic consumption,

and that means reducing its high savings rates which, at 46% of GDP, are 26% higher than the

annual average; and it needs to control speculative investment in real estate while ensuring that this does not slow down the economy.

4.116. There is yet another important challenge that is of particular concern to Mexico, as mentioned on different occasions and in different forums, namely the reduction of industrial overcapacity, particularly in the steel sector. Although China has taken a number of steps to that end, this continues to be an area in which greater effort and international coordination will be required to arrive at levels that do not adversely affect international markets. In addition, China

should take better advantage of the resources that are currently directed to companies operating at a loss in sectors with excess capacity, and State enterprises.

4.117. Turning to the work being done at the WTO, we acknowledge China's leadership in the Friends of Investment Facilitation for Development Group and its active participation in the Friends of E-Commerce for Development Group. China's contribution to the work of these groups over the

past year has unquestionably helped us to reach a better understanding of the benefits of investment facilitation and e-commerce for the developing countries.

4.118. We also appreciate China's participation in the discussion of other joint initiatives, such as domestic regulation of services, and small and medium enterprises.

4.119. Another pressing issue in which China is actively involved is the deadlock on the vacancies in the Appellate Body, which is affecting not only the dispute settlement system, but also the credibility of the multilateral trading system.

4.120. Regarding the implementation of more proactive policies, my delegation recognizes China's

effort in ratifying the Trade Facilitation Agreement. However, we hope that China will redouble its efforts to introduce a fully operational single window and to fulfil all of the provisions of the Customs Cooperation Agreement on time.

4.121. We welcome the fact that China, in keeping with its size, is taking on ever-greater responsibility in the multilateral trading system. But there are still areas of concern to my country which we see as opportunities for China to redouble its efforts to comply with its obligations, particularly as regards transparency.

4.122. We are aware that gathering information can be a challenge, and although there has been overall compliance, China is significantly behind in the notification of state trading enterprises, subsidies, and domestic support provided by the Central Government. The consistent notification of state trading enterprises is made all the more important by the degree to which the State is involved in the economy: indeed, the State retains a majority share in all but one of the hundred largest publicly listed companies.

4.123. With respect to domestic support for agriculture, we note with concern that the latest

notification was submitted in 2010 and that support was on the increase in the years prior to and

subsequent to that notification. This lack of information is unlikely to provide greater certainty in the relevant negotiations, particularly in view of the significance of China's agricultural performance in international markets.


- 25 -

4.124. Nor did China notify its subsidies during the period 2015 to 2017. And yet, according to the information available, it can be assumed, in principle, that considerable subsidies are granted to intelligent manufacturing, advanced technologies, new energy vehicles, and the fisheries sector.

4.125. From the recent presentation by Vice-Minister Wang, we understand that some of this information was supplied recently, and we look forward to reviewing it in detail.

4.126. Going forward, we would urge China to increase its efforts to provide the lacking

information. By doing so, not only would China be fully complying with the commitments it assumed when it acceded to the WTO, but it would also be contributing to the transparency and credibility of the Organization and helping to restore confidence.

4.127. In conclusion, we wish China every success in this Review and thank China for the efforts made to answer the many questions submitted by my delegation.

JAPAN

4.128. 17 years have passed since China's accession to the WTO.

4.129. During this period, structural changes occurred in the global economy and China has become the world's largest trading country. We expect China to fulfill its responsibility as one of the most important players in international trade by contributing to maintaining and enhancing free trade and by further promoting market-oriented economic reform.

4.130. From this standpoint, Japan commends Vice Minister Wang Shouwen's statement, and China's willingness to further pursue reforms and liberalization.

4.131. We expect China to follow the famous Japanese maxim "yu gen ji kko (有言実行)", which

means keeping one's word.

4.132. We, the WTO Members are required to abide by the WTO rules but today we should also proactively address numerous challenges facing the WTO.

4.133. In this TPR, we would like to mention two of the most serious challenges that we need to address together with China, namely "market-distorting measures" and "policies for next

generation industry".

4.134. First, I would like to discuss "market-distorting measures".

4.135. Today, we are facing various threats to free and fair market competition. Excess capacity is the phenomenon produced by the lack of fair market competition. There is an urgent need to tackle issues relating to excess capacity in the steel industry as well as the ship-building industry.

4.136. China announced that it had been successfully reducing its overcapacity in the steel sector

since 2016. We appreciate such efforts.

4.137. However, we believe that China should address the root causes of overcapacity including so called "zombie enterprises".

4.138. Furthermore, in cutting-edge industries like semi-conductors, we also have a strong concern that a variety of supportive measures such as those included in "Made in China 2025" will generate similar problems of excess capacity in the future.

4.139. From the viewpoint of ensuring a level-playing-field, we are also concerned about the

expanding role of the state sector and the increasing trend of providing public aid, including subsidies, to SOEs in China.

4.140. Since subsidies affect a level playing field, ensuring transparency is indispensable. We request China to update notifications on subsidies in accordance with the SCM Agreement.


- 26 -

4.141. Transparency and predictability are key factors in other areas too. We hear that foreign companies in China are often required to accept disadvantageous conditions including those requiring technology transfers to domestic companies, without any legal grounds. This is contrary to China's Protocol on the Accession to the WTO.

4.142. Second, I would like to address the topic of "policies for next generation industry".

4.143. We are facing great challenges regarding how to face and encourage the new industrial

revolution while avoiding over-restriction of business activities.

4.144. In this regard, we have some concerns on China's Cybersecurity Law and its relevant draft regulations, which may have inflicted de facto disadvantages on foreign companies in terms of competitiveness. This situation may be inconsistent with Article 17 of the GATS (National Treatment), and we therefore request that this law be improved promptly.

4.145. Cross-border data transfer is another example; the free flow of data is an essential

element in conducting global business today, and Japan is especially concerned that the data localization and safety assessment obligations stipulated in the Cybersecurity Law may function as an obstacle to the free flow of data.

4.146. Also, regarding new-energy vehicles, we would like to express our concern on the contents of the draft regulation, as we believe it may be over-restrictive.

4.147. In addition, protection of intellectual property rights is essential in encouraging innovation and advancing next generation technologies. From this viewpoint, in order to ensure national

treatment, we request revision of (i) the foreign suppliers' liability and (ii) the attribution of improved technologies stipulated in the "Regulations on Technology Import and Export Administration".

4.148. In conclusion, for this TPR of China, we have submitted a number of questions and requests, and these reflect our expectation for China to play a more positive role in the WTO. Historically, China's "reform and opening-up policy" and its unprecedented scale of economic growth have been undeniable driving forces for the development of global trade. We believe China

would be able to further contribute to advancement of free trade, by joining collective efforts to achieve freer and fairer rule-based market competition.

4.149. In China there is a saying that goes "xíng shèng yú yán (行勝於言)", with the meaning that

actions speak louder than words. Actually, we see this phrase in the calligraphy work hanging in the corridor of the WTO.

4.150. As China is already one of the most important WTO Members, we hope China will put this saying into action and truly contribute to strengthening the WTO and the multilateral trading system.

4.151. We wish China a successful and productive TPR.

LAO PDR ON BEHALF OF ASEAN

4.152. First and foremost, ASEAN wishes to note that ASEAN-China relations have been strong, and stable. We established the ASEAN-China Free Trade Area in 2010 and took another step

forward in 2016 when we agreed to pursue greater trade liberalization and better investment conditions by upgrading our free trade agreement.

4.153. These close trade and investment relations have proved to be mutually beneficial, and we welcome the continued strong and growing levels of trade, investment and tourism flows. In 2016, China was ASEAN's largest trading partner, with a total merchandise trade reached US$368 billion and China continued to be ASEAN's fourth largest external source of foreign direct investment valued at US$9.8 billion.

4.154. ASEAN looks forward to further strengthening these relations with China and intensifying our efforts to meet the joint target of US$1 trillion in trade volume and US$150 billion in


- 27 -

investment by 2020. On this note, ASEAN wishes to highlight two points. First, ASEAN is pleased that we are intensifying our pursuit, together with five other ASEAN dialogue partners, for a modern, comprehensive, and high-quality trade agreement in the Regional Comprehensive Economic Partnership (RCEP) negotiations.

4.155. Second, ASEAN appreciates China's continued support towards the ASEAN Economic Community through various initiatives, namely the ASEAN-China Expo to enhance ASEAN's micro,

small and medium enterprises participation in global value chains; harnessing synergies between the One Belt One Road and the Master Plan on ASEAN Connectivity 2025; and the grant assistance for the Initiative for ASEAN Integration.

4.156. ASEAN would like to take this opportunity to commend China's role in the Multilateral Trading System, including their active participation in various work and negotiations of the WTO. In this regard, we would like to express our appreciation to China, in particular to Ambassador

Zhang Xiangchen and his delegation for their constructive engagement with our delegations here in Geneva.

4.157. Some of the ASEAN members have submitted written questions to China and would like to thank China for their written responses. Last but not least, ASEAN would like to wish China a successful trade policy review.

LAO PDR

4.158. Having already taken the floor, I will also speak on behalf of the Government of Lao PDR.

We are very honored to be here today. In association with the ASEAN statement, Lao PDR's bilateral economic relationship with China is supported by strong and longstanding trade, investment, and people-to-people ties. Both sides have the synergy to further expand and deepen cooperation in areas of our mutual interests and to work together at bilateral, regional and international fora.

4.159. In view of bilateral relation, China is the largest foreign investor, the second largest trade partner, and one of the largest development partners to Lao PDR while Lao PDR is the third largest

destination of China's investment in ASEAN countries. In 2017, total trade between the two countries amounted to over 3.02 billion, grew by an additional at 28.6%. By realizing the importance of developing human resources, the economy, trade, finance, investment and society, Lao PDR and China have carried out the 417-kilometer construction of railway linking Vientiane Capital, with the Chinese border, with a view to boosting current trade and investment levels.

4.160. Lao PDR continues to highly value China's contribution and commitment to preserving and

strengthening the multilateral trading system and to overcome current challenges. We also appreciate China's contribution in the WTO forum especially on issues supporting LDCs participating in international trade.

4.161. In light of trade policy review today, we note the positive outcomes that China has demonstrated in its open and transparent economy. China has shown its commitments to open-up trade, promote economic growth and job creation by participating in trade negotiations.

4.162. In this review, Lao PDR submitted question, covering the policies of our interests such as

"Belt and Road Initiative". We thank for the reply and hope that this initiative will further strengthen and enhance our bilateral cooperation especially the implementation of the WTO Trade Facilitation Agreement.

4.163. In conclusion, Lao PDR would like to express our appreciation to China for the cooperation in every level and to China's delegation for its hard work. We wish China every success in this Trade Policy Review.

AUSTRALIA

4.164. Australia welcomes advances China has made over the period of the current review. We welcome China's strong support for and contribution to the multilateral trading system, as highlighted in its country report and reaffirmed in its recent WTO White Paper. We note President


- 28 -

Xi's commitment at the Boao Forum in April 2018 to ongoing trade and investment liberalization, lower tariffs and expanding imports. We share China's objective for an open global economy supported by rules that promote economic growth and development, trade liberalization and free markets.

4.165. Australia and China are important trading partners. Our strong bilateral trade and economic relationship continues to grow and diversify through implementation of the China

Australia Free Trade Agreement (ChAFTA). It has brought significant economic benefits to both our countries and serves as a model.

4.166. Australia values our cooperative relationship with China in the WTO, as well as the G20 and APEC. We look forward to the early conclusion and implementation of the Regional Comprehensive Economic Partnership (RCEP) agreement to lower trade barriers and further strengthen trade and investment in the Asia-Pacific region, and globally.

4.167. We commend China's high level of participation across the WTO agenda. We particularly welcome China's leadership on new and emerging issues in the WTO, such as e commerce and investment facilitation for development, and its active engagement across the MC11 Joint Statement initiatives.

4.168. We note the important role China played in the expansion of the Information Technology Agreement (ITA-2) and implementation of the Trade Facilitation Agreement (TFA). We also note China's contribution to the important work undertaken in regular WTO committees.

4.169. As we proceed with Australia's accession to the Government Procurement Agreement (GPA), we look forward to China's accession. We also look forward to China's continued support for finalizing the Environmental Goods Agreement (EGA) negotiations.

4.170. Australia appreciates China's efforts to implement its WTO accession commitments.

Progress has been made since the last review, in particular in simplifying and reducing its import tariffs. However, some areas of concern remain. Australian firms in China continue to experience restrictions, including in services and the financial sector. Intellectual property (IP) infringement,

particularly counterfeits, is an ongoing concern. China has recognized the need for further reforms in these areas. Market distortions are still apparent in China's economy, notably the lack of competitive neutrality disciplines on state-owned enterprises (SOEs). We encourage China to continue to reform and liberalize its trade and investment environment to support continued strong growth.

4.171. Australia notes China's recent nation-wide foreign investment Negative List, which will

come into effect 28 July 2018, made modest improvements in reducing restrictions for foreign investors. We encourage China to review the List, reduce the number of restricted categories and provide more commercially meaningful access to foreign investors.

4.172. We encourage China to continue its efforts to harmonize customs procedures and regulations across provinces and to adopt international standards wherever possible. Australia remains concerned about China's export restrictions. We encourage China to adopt a risk-based approach and to ensure that certification requirements are not unduly burdensome.

4.173. We appreciate China increasing consultations with foreign governments and business on draft legislation and regulations. We encourage China to continue to work closely with the foreign business community to improve the transparency and predictability of its regulations and to incorporate international standards and best practices into its regulatory systems.

4.174. Australia recognizes China's efforts to strengthen cybersecurity but we share the views of others that China's Cybersecurity Law has imposed new restrictions on business as digital trade is expanding. Australia encourages China to benchmark new regulations on cyber security against

international best practices.

4.175. We note China's undertaking to continue to fulfil its commitments and in this context, look forward to improved adherence to existing obligations, in particular with WTO transparency and notification requirements where we see substantial room for improvement. For example, China has


- 29 -

not submitted a notification on agricultural domestic support since 2010 and has not notified any subsidies in relation to the fisheries or steel sectors.

4.176. We encourage China to demonstrate leadership in addressing current challenges facing the WTO. The WTO and the rules-based trading system provide the frameworks and enforcement mechanisms necessary to ensure all Members can benefit from global trade. We cannot overstate the importance of continuing to use such WTO mechanisms to resolve trade disputes.

4.177. Australia looks forward to continuing to work with China to advance global trade liberalization. We thank China for its replies to our written questions and look forward to reviewing them carefully.

EUROPEAN UNION

4.178. China's integration into the global economy has lifted China from one of the poorest countries in the world to an upper-middle-income country and the world's second largest economy.

As China describes in its Government report, China's economic development is at a historic juncture, transitioning from rapid growth to high-quality development. China states, I quote, that "developing a modernized economy is an urgent requirement for getting China smoothly through this critical transition".

4.179. The EU certainly agrees, and encourages China to allow market forces to play a more decisive role in ensuring fair competition. We welcome China's recent announcements to further open-up the economy to foreign investors, covering, among others, tariff reductions, elimination of

some equity caps and openings in the financial sector. We trust that these announcements, which represent a step in the right direction, will be implemented swiftly and effectively.

4.180. Nonetheless, we see room and need for further opening-up. While China remains a key destination for investment, in the latest survey conducted by the European Chamber of Commerce

in China, half of the respondents considered that doing business in China had become more difficult over the last year. The EU regrets that the 2017 Foreign Investment Catalogue did not contain meaningful openings, notwithstanding China's claim that the number of restrictions went

down. Pilot programmes and Free Trade Zones have not attracted the volume of investments that the Chinese authorities expected, partly because too many limitations were maintained.

4.181. Openness has to go hand in hand with fairness. The EU is closely following the reform process of state-owned enterprises and encourages China to pursue structural reforms more vigorously. Our concerns over the potentially distorting effects of public intervention in commercial activities are to a large extent due to the persistent lack of transparency surrounding this

intervention. Several of the EU's advance questions relate to SOEs as we seek to learn more about the conditions under which they operate and the incentives they enjoy.

4.182. In this regard, I need to repeat the EU's calls from China's last TPR for China to truly

honour its transparency obligations in the WTO. In its Government report, China seeks to reassure Members about the attention China pays to core WTO values and rules, including transparency – however, several notifications are long overdue, and we particularly urge China to submit its outstanding notifications on agriculture and its subsidy notification for 2015-2017 (we take note of

the opening statement of China on the latter). We also remind China of its commitment to publish all its trade-related laws and measures, translate them into one or more WTO languages, and ensure proper stakeholder consultations.

4.183. Various long-standing issues that have been worrying China's trade partners persist. EU business continues to struggle with different behind-the-border measures, including related to the attribution of licenses, and the insufficient enforcement of intellectual property rights. These issues need to be highlighted because they are bound to gain relevance as China increasingly focusses on

innovation and high-tech production.

4.184. Two years ago, we stressed our concerns regarding overcapacity in particular in China's

steel sector. Urgent action is needed to address this problem and China is in a special position to help. Beyond steel, we must equally address the causes for overcapacity in other sectors.


- 30 -

4.185. Industrial policies have traditionally played an important role in China. While China's ambitions are understandable, initiatives such as "Made-in-China 2025" raise serious concerns in relation to local content requirements, use of subsidies and forced technology transfer. Encouraging technological innovation should be based on market principles, to avoid the creation of new overcapacity.

4.186. Regarding China's cybersecurity legislation, while we acknowledge the need to protect

cyberspace, we urge China to ensure that no new market access barriers are created. Measures should be proportionate and technology-neutral. In this regard, the EU is worried about the wide scope of the measures and potentially discriminatory effects on foreign firms in China. The EU also invites China to notify these measures under the TBT Agreement at its earliest convenience.

4.187. Finally, we acknowledge the possible benefits that the Belt and Road Initiative may bring, such as increased trade connectivity between Europe and Asia. The EU generally supports such

initiatives as they contribute to sustainable growth in the Euro-Asian region. Done in the right way, more investment in cross-border infrastructure links can unleash growth potential with benefits for all. But such initiatives must be based on a level-playing field for trade and investment with full adherence to market rules and international norms. As China has already committed to such principles e.g. in ASEM and bilaterally, we look forward to seeing practical progress.

4.188. China's seventh Trade Policy Review comes at a time of stress and uncertainty for the multilateral trading system. While we were heartened to read how China considers itself as a firm

defender of WTO values in its report and recall President Xi's speeches in Davos in 2017 and at the recent Boao forum, the WTO Membership is eager to see China translate these words into action. We all count on China to concretely demonstrate its commitment to transparency and non-discrimination, actively participate in current and future WTO negotiating activities, help find multilateral solutions to current trade problems and fill the gaps in the trade rulebook, in particular in relation to subsidies.

4.189. As one of China's top trading partners, the European Union looks forward to continue

working with China in a sense of shared responsibility to not only safeguard but strengthen the multilateral trading system.

4.190. On behalf of the EU, I wish China a productive and successful Trade Policy Review.

UKRAINE

4.191. China has been and remains the strategic partner for Ukraine in terms of bilateral cooperation on wide range of issues, namely trade, infrastructure, industry and digital economy.

Our countries enjoy effective cooperation within the One Belt One Road (OBOR) initiative as well as in the fields of agriculture, science, technology, space industry and investment. Implementation of infrastructure projects can be mentioned among the prospective areas for further cooperation, in particular, development of port and airport infrastructure in Ukraine, road transport, railways

electrification etc.

4.192. Foreign trade cooperation between Ukraine and China is regulated by the Trade and Economic Cooperation Agreement between Government of Ukraine and Government of the

People's Republic of China (1992).

4.193. According to the Ukrainian statistic, the trade turnover between Ukraine and China in 2017 amounted to US$7,69 billion. At the same time, Chinese export to Ukraine amounted to US$5,65 billion (+20.5%), Chinese import from Ukraine amounted to US$2,04 billion (+11.3%).

4.194. Ukraine imports from China the following commodities: machinery and mechanical appliances, electrical equipment; textiles and textile products; base metals and articles of nonferrous metals; plastics and articles thereof; chemical products; miscellaneous industrial

products. Ukraine exports to China mineral products; vegetables; animal or vegetable fats and oils and products of their processing.

4.195. In terms of bilateral investment cooperation (as of December 2017) China's investments to Ukraine amounted US$18.2 million and covered the following areas: agriculture, forestry and


- 31 -

fishing, industry, wholesale and retail trade; repair of motor vehicles and motorcycles. Ukraine's investments to China's economy totaled US$1.5 million and were directed mainly to industrial enterprises.

4.196. Our country highly appreciates the partnership cooperation with China across the WTO bodies on different issues of mutual interest.

4.197. Within this TPR exercise Ukraine has submitted a number of specific questions and is

seeking clarification on a range of the following topics:

• applied MFN tariffs; • other charges affecting imports; • government procurement; • export support and promotion;

• price controls and market price support systems;

• financial services etc.

4.198. We would like to express gratitude for the responses, which we are reviewing carefully.

4.199. In conclusion, I would like to express our deep appreciation to the delegation of China and especially to the team of China's Mission to the WTO in Geneva for their hard work in preparing for this TPR and for cooperation on the range of WTO issues.

4.200. Ukraine wishes the delegation of China very successful Trade Policy Review and looks forward to further strengthening of our bilateral relations.

HONG KONG, CHINA

4.201. Hong Kong, China (HKC) maintains a very close economic and trade relationship with China. China has been our largest trading partner for decades, while we were their third largest trading partner last year (2017). We are also China's largest source of realized foreign direct investment.

4.202. China being one of the largest economies in the world, its trade policy can have global impacts. In his opening remarks, Vice Minister Wang recalled that 40 years ago, China made a

decisive move to reform and open-up. So, for the period under review, HKC would like to examine more closely the efforts that China has made in pursuit of this policy.

4.203. In Investment, the last two years saw China implementing certain measures that aimed at easing foreign equity restrictions and simplifying administrative procedures. For instance, the Catalogue of Industries for the Guidance of Foreign Investment used to have a requirement that Chinese shareholders must hold a dominant position in various businesses, including accounting

and auditing. This requirement was removed in 2017. Meanwhile, as a result of changes made in

2016, more foreign-invested enterprises can have their establishment or changes effected through filing for record, and the number of investment projects requiring central government approval has drastically reduced by 90%.

4.204. On the Services side, China has also introduced regulatory changes and reforms in sectors such as telecommunications, banking, insurance, legal and accounting, which have led to streamlined procedures and greater market access. As China seeks to increase the share of its

services trade in the economy, we look forward to further liberalization of its financial sector, in particular banking and insurance.

4.205. Regarding goods, the trading environment is conducive, and improving. With all tariff lines bound at ad valorem rates, China's tariff regime is fairly predictable, and applied MFN rates are going down. Since ratification of the Trade Facilitation Agreement, China has also stepped up the reform of its customs procedures, such that one-third of imports are now declared through single windows, and clearance times for both imports and exports have reduced by over 35% since 2016.


- 32 -

4.206. Technical standards, however, have not seen a lot of changes. About 74% of the mandatory standards are adoptions of international ones. This has been the case for the past four years. We would encourage China to step up the harmonization of standards to facilitate trade.

4.207. Talking about trade in goods, one development worth noting is that China is making it a major policy initiative to promote import. This is notwithstanding a reducing surplus in its current account. The China International Import Expo, inaugurating later this year, will invite the world to

sell more to the Chinese market. We hope that sustained efforts in this regard, reinforced by various facilitation measures, will create more business opportunities and inject new impetus to international trade.

4.208. There are other areas where we would like to see progress being made with the same vigour. Government procurement, for instance. Here, we note that domestically, China is working towards a more comprehensive framework, including amending its regulations to enable e-

tendering. But more importantly, we hope to see China's accession to the WTO Government Procurement Agreement (GPA) expedited. We look forward to China's next revised offer and its fruitful discussion with GPA Parties including HKC.

4.209. The protection and enforcement of intellectual property rights is another area being developed. Since the last TPR, China has continued to implement measures to enhance the protection of patents, trademarks, geographical indications, copyright of online works, and trade secrets. Enforcement is also strengthened both at the administrative and judicial levels. We

welcome these efforts, and we encourage China to continue improving its IP regime.

4.210. One may say that, since China made its historic decision to open-up, this policy has fundamentally changed the way that China participates in international trade. It has brought China to the WTO; given it the confidence to embrace globalization; and inspired the kind of deep cooperation that underpins the Belt and Road Initiative.

4.211. The transformation has been phenomenal, and with it comes greater responsibilities and higher expectations. That is why we have heard today all those calls for China to do more: to

further reduce state involvement in the economy; promote market competition; enhance the transparency of its trade regime, etc.

4.212. There are also expectations for China to make greater contributions to the multilateral trading system. Such contributions can, of course, take different forms. As party to the Buenos Aires joint statements on e-commerce, investment facilitation and MSMEs, HKC is particularly pleased to see China participating actively in these discussions, and leading some of them. We also

appreciate China's firm commitment to preserving and strengthening the rules-based multilateral trading system. At a time when this organization is facing so many challenges, and the global trade order so much disturbed, this is the assurance we need from every Member of the WTO.

4.213. Looking ahead, we hope China can take bolder steps to liberalize trade, and make

contributions to the global economy that will benefit all of us.

4.214. We thank China for their timely response to our questions, and wish China a very fruitful and successful Trade Policy Review.

CAMBODIA

4.215. My delegation congratulates China for the remarkable economic growth since its 6th Review. Chinese GDP grew at 6.7% in 2016 and 6.9% in 2017.

4.216. We applause China for its commitments to deepen reform and advance law-based governance in every area as well as to maintain its predictable trade policy framework under the WTO Multilateral Trading System.

4.217. We note and thank Chinese delegation especially Geneva based led by Ambassador

H.E. Mr. Zhang Xiangchen, for their good cooperation and active participation in the current negotiations to secure transparent principle and initiating proposals to build on new disciplines in the WTO.


- 33 -

4.218. In the context of regional arrangements, Cambodia associates itself with statement made by Lao PDR on behalf of ASEAN, and would like to stress that China has played a crucial role in the region in strengthening cooperation and exploring opportunity in creating intra-regional trade and regional value chains.

4.219. In the context of the global trade, my delegation takes this opportunity to express our appreciation to the Government of China for opening markets and providing zero tariffs for 97% of

its tariff lines by the end of 2017. I take also this opportunity to encourage China to expand product coverage and product interests that we are exporting to China into their duty-free list such as garment, natural rubber products and rice. We also encourage China to consider removing quotas for some products of our interests which we strongly believe that if China could do so, millions of people will be lifted out of poverty.

4.220. In the context of bilateral relation, China is our key trade and investment partner.

Cambodia and China enjoy a long history of friendship and cooperation. In July 1958, diplomatic relations were officially established. This year, we are celebrating the 60th Anniversary for our relations.

4.221. China is now the largest source of FDI and the largest trading partner with Cambodia. In 2015, Chinese investment in Cambodia rose to US$961 million and bilateral trade between Cambodia and China grew to US$4.4 billion. Our exports to China accounted for about US$600 million which was ranked China as the 5th export destination for Cambodia. Cambodia's

imports from China amounted to approximately US$4.5 billion which was set China as the 1st import destination to Cambodia. The total bilateral trade in 2017 has reached US$5,800 million, which was increased by 21.8% compared to the total bilateral trade in 2016, which was only at US$4,535 million.

4.222. In the context of Technical Assistance, my delegation would like to take this opportunity to thank China for providing the technical assistance to LDCs including Cambodia such as the TAs for

South-South cooperation, for the implementation of the 2030 Agenda for Sustainable Development

and for other areas account for more than 600 assistance programmes including infrastructure, agricultural development, medical and health care, aid for trade, poverty reduction and capacity building.

4.223. I would like to inform that Cambodia has submitted advance written questions. We thank China for the answers posed by Cambodia and other members. Cambodia is going to submit further written questions/requests by today related to the Trade Policies and Practices by Measure,

SPS requirements and Chinese National Centers for Customs based on both reports.

4.224. Finally, my delegation wishes China every success in its 7th Trade Policy Review.

COLOMBIA

4.225. We are pleased to note that China's economy has been contributing significantly to world growth and is a cornerstone of the global economy. The 6.8% growth rate recorded in 2017 and the rate of approximately 7% expected in the coming years, together with the controlled level of inflation of less than 2%, suggest that China can look forward to a new phase of economic stability

with a slightly lower, but sustainable growth rate, thanks to strong domestic demand and high rates of investment.

4.226. On the trade front, we note that since its accession to the WTO, China has signed 16 free trade agreements, which represented approximately 40% of its total foreign trade volume in 2016. This trend is expected to continue with the construction of a high-standard FTA network: China is currently negotiating an agreement with Japan and South Korea as well as six agreements with other countries.

4.227. Meanwhile, China's services sector has been growing steadily, its share in GDP exceeding 50% for the first time in 2015. In this context, the regimes governing the main tradeable services

such as telecommunications, legal services and accounting, still impose limits on supply by foreign companies. However, there have been positive changes in key sectors such as financial services,


- 34 -

with the approval of the "three-year pilot programme for the city of Beijing to further open up a number of services sectors".

4.228. It is noteworthy that e-commerce has become a priority for China. According to the Secretariat report, much of the contribution of trade in services to GDP is due to a high level of international sales using electronic payments. This is an area in which the public administration has sought to improve the regulations, particularly those governing electronic payments and the

facilitation of customs procedures. Indeed, the report points out that when it comes to e-commerce, there are no restrictions on foreign investment in the telecommunications sector.

4.229. We note China's increasing importance in the foreign investment area. According to UNCTAD, in 2017 China received more than USD 136 billion and invested more than USD 124 billion abroad. China's investment regime is of particular interest. The Secretariat report tells us that the Investment Catalogue lists the industries to be encouraged or restricted according to

national priorities. The catalogue was revised in 2017, and now seeks to attract companies offering advanced manufacturing, high technology, energy savings and environmental protection as well as modern services industries. We would like to know the results of this new approach, and above all, what types of incentives and tools are proving most effective in achieving the objective of attracting companies with these characteristics.

4.230. Turning to agriculture, we have noted with interest China's goals of accelerating modernization in the sector to improve farmers' well-being in accordance with the 13th Five-Year

Plan, which provides for the implementation of many reforms in the agricultural sector. However, as mentioned in our questions for this review, the Secretariat report states that the general level of support for agriculture continued to grow during the review period, and that domestic support notifications have been pending since 2011. We urge China to comply with its notification obligations in order to provide us with greater clarity regarding its agricultural sector.

4.231. During the period under review, there were a number of positive changes in China's

competition policy. Amendments were introduced in 2016 and 2017 to improve the relationship

between the Anti-Unfair Competition Law and the Anti-Monopoly Law. The amended Law also introduces provisions to prevent unfair competition activities carried out by technological means, such as malicious interference. These amendments represent a big step forward in competition policy, and are all the more important since this was the first time the Law had been amended since its adoption in 1993.

4.232. At the same time, the increasing competition and private sector participation in economic

activity, both in the manufacturing sector and in services, for example the banking and financial sectors, are extremely positive developments. On the other hand, as mentioned during the Sixth Trade Policy Review in 2016, State participation in the Chinese economy remains considerable. In this connection, we await China's new notification on state trading enterprises as well as the information on public financial support for state-owned enterprises.

4.233. Turning to bilateral trade relations, China is an important partner for Colombia. In 2017, it

was Colombia's third largest export market. That same year, there was a 45% increase in sales of

non-mining/energy products, for example copper, leather and products thereof, and coffee. China was the second supplier of goods to the Colombian market, accounting for 19% of the country's purchases in the world.

4.234. We would like to highlight China's active participation in the WTO. We appreciate its commitment to the ongoing negotiations in this Organization and its prominent role in various regular bodies. We especially welcome China's support for and commitment to the initiative on investment facilitation for development.

4.235. Finally, we note the "One Belt and One Road" initiative through which China, adopting a cooperative and constructive approach, has introduced an active policy of international cooperation in trade, investment and finance. The initiative will support growth, trade and international integration.

4.236. We wish China a successful trade policy review and look forward to continuing our close collaboration with Ambassador Zhang and his excellent team in Geneva.


- 35 -

COSTA RICA

4.237. Costa Rica has a special relationship with China, a relationship that we would like to continue strengthening. The two countries have concluded a Free Trade Agreement which has been in force since August 2011. Since then, bilateral trade has increased by close to 67%1, making China our main trading partner in Asia. Between 2012 and 2016, trade grew at an average annual rate of 9.4%. Moreover, 2016 saw the adoption of the Investment and Promotion

Protection Agreement with the People's Republic of China, a valuable instrument for the promotion of relations between the two countries.

4.238. On the subject of China's performance, although its economic growth has been somewhat slower, it was still impressive and has accounted for around 30% of global economic expansion since the last review.2 China's economy continues to show signs of considerable resilience, with growth rates of 6.9% in 2017 and 6.8% in 2018 according to World Bank calculations.3

4.239. Thanks to this growth, China has managed to reduce the number of people living in extreme poverty and to lessen income inequality. We note with interest the way in which China has transformed its economy so that consumption, domestic demand and services have become the predominant economic growth factors. Also worth noting is the growth of the services sector in China, which for the first time accounted for more than 50% of GDP in 2015.

4.240. My delegation would like to highlight China's leadership, as the world's leading energy consumer, in mitigating climate change. We welcome its objectives according to which by 2020,

carbon dioxide emission per unit of GDP should decrease by 40% to 45% compared to 2005, and we urge China to continue in that direction. The reform of fossil fuel subsidies is crucial to reducing the distortions and improving trade flows as well as to improving the environment. Like others, Costa Rica appreciates China's continuing support for the G-20's agenda and commitments on this important topic, being one of the first countries to undergo a G-20 peer review of its fossil fuel subsidies. We encourage other G-20 members to volunteer for a peer review in order to increase

policy transparency and share the lessons learned.

4.241. Costa Rica also recognizes the key role that China plays in the WTO's multilateral trading system and the efforts it has made to amend more than 2,300 national laws and regulations and some 190,000 local laws and regulations to bring them in line with its WTO commitments.4 At the WTO, we particularly welcome the work it is doing in areas such as e-commerce through its participation, for example, in the Friends of E-Commerce for Development group as well as the Information Technology Agreement and its expansion.

4.242. It is important that China, in keeping with its WTO commitments and its predominant role in world trade and the global economy, should keep its notifications up to date. In particular, we are concerned by China's outstanding notifications on subsidies mentioned in the Secretariat report, the last of which date back to 2014. The same is true for the Agreement on Agriculture, where China's last notification on domestic support was submitted in 2015, for the period 2009-2010.

4.243. My delegation is aware of the significant effort that has been made by the country under

review in preparing its responses to the questions that have been posed, and we would like to thank China for the attention it has given to our questions.

4.244. Finally, I take this opportunity to wish the delegation of China a successful trade policy review.

1 Data for 2017, www.comex.go.cr. 2 Secretariat report, paragraph 1.1. 3 World Bank, China Economic Update – May 2018

(http://www.worldbank.org/en/country/china/publication/china-economic-update-may-2018). 4 https://news.cgtn.com/news/3d3d414f7a4d444e78457a6333566d54/share_p.html.

http://www.worldbank.org/en/country/china/publication/china-economic-update-may-2018

https://news.cgtn.com/news/3d3d414f7a4d444e78457a6333566d54/share_p.html


- 36 -

NEW ZEALAND

4.245. Now more than ever it is important to be participating and engaging in the processes of the WTO and upholding its rules and agreements. Our world benefits from the rules of global trade. New Zealand's trading relationship with China is an example of this.

4.246. New Zealand was the first OECD country to negotiate and enter into a Free Trade Agreement (FTA) with China in 2008 following their entry into the WTO. Two-way trade between

New Zealand and China has more than tripled since the FTA was agreed, with trade now exceeding NZD$28 billion. China has become New Zealand's largest export market and in recent years our partnership has expanded into non-traditional areas, such as the creative sector, science and technology, and e-commerce. Trade in services (particularly education and tourism) are continuing to grow very strongly. As a result, we are seeing an increasingly vibrant and dynamic trade relationship, which we look to further broaden. An upgrade to the FTA is currently under

negotiation, which is an opportunity to address barriers constraining trade, modernize the FTA, and deepen our already strong cooperation with China.

4.247. Recent years have seen China's economy stabilize and adjust to a "new normal" according to reports from the WTO Secretariat. China has also said they have been transitioning from a phase of rapid growth to high-quality development. While growth has slowed since 2013, real GDP grew by 6.7% in 2016 and is expected to be around 6.8% in 2017, supported by strong domestic demand.

4.248. We warmly welcome China's stated commitment to trade liberalization and economic reform in a fast-changing, complex environment. New Zealand considers it crucial that China continue to pursue these goals. We welcomed comments by President Xi Jinping where he pledged a more open China, at the Business Forum in Boao in April 2018. In particular, President Xi's promised actions "to break new ground" including lower auto tariffs.

4.249. We welcome China's engagement in the WTO including China's participation in the Trade Policy Review, continuing to work within global trade rules and respecting the dispute settlement

mechanism. We encourage China to effectively use transparency mechanisms within the WTO ensuring its notification obligations are fulfilled in a timely way.

4.250. We appreciate this opportunity to seek clarification from China on aspects of its trade and economic policies and we have posed a number of questions to that end.

4.251. As a major exporter, New Zealand has been encouraged to see China's efforts to reform and harmonize its customs procedures. In particular, the reduction in clearance times in 2016 and

again in 2017 due to the launch of the National Customs Clearance Integration reform. One third of imports are now cleared through single windows. New Zealand has an interest in receiving any updates on when and what additional proportion of imports can be cleared through single windows.

4.252. New Zealand remains concerned about subsidies made available to the fisheries sector in China, which contribute to overcapacity and overfishing. China exercised very welcome leadership in APEC in 2014, which of course included the issuing of the Xiamen Ocean-Related Ministerial

Declaration. In line with this Declaration and the more recent UN SDG Target 14.6, we look forward to updated notifications in this area and we encourage China to continue its efforts to eliminate and support multilateral prohibitions on such harmful subsidies through the negotiations our Ministers have mandated us to conclude in 2019.

4.253. China's government procurement legislative and regulatory regime has remained largely the same during the review period. New Zealand has an interest in further understanding the operation of the "buy domestic" provision, and in particular how the exceptions under the provision

operate.

4.254. New Zealand also seeks to further understand the implementation and impacts of China's

new cybersecurity law which came into force 1 June 2017. The new cybersecurity law and its implementing regulations and standards create new duties for network operators, additional obligations for operators of critical information infrastructure and proposed additional requirements


- 37 -

regulating the cross-border transfer of data. New Zealand has a strong interest in understanding how the measures have been designed to ensure they are no more burdensome than necessary to achieve their objective; and minimizing impacts on companies, given the nature of modern business relies on and produces large volumes of data.

4.255. Fossil fuel subsidy reform is crucial to reduce distortions and enhance trade flows, as well as improve the environment. New Zealand welcomes China's continuing support for the G20's

agenda and commitments on this important topic, being one of the first countries to undergo a G20 peer review of its fossil fuel subsidies. We strongly encourage other G20 members to similarly volunteer for peer review to increase policy transparency and share lessons learned.

4.256. Finally, New Zealand is a strong supporter of WTO transparency mechanisms such as Trade Policy Reviews. These instruments play an essential role in allowing Members to better understand and review the policies and practices of other WTO members. We are encouraged by China's

participation and look forward to continuing to engage with China through the WTO to update and extend the scope of rules and mutual commitments in the multilateral trading system to ensure we can all continue to grow and prosper together in the future.

ARGENTINA

4.257. Argentina is pleased to note that over the past few years, China's real GDP has grown by close to 7% annually. We also welcome the decrease in the income inequality and poverty levels.

4.258. We commend China for its Government's effort to introduce structural reforms to the

economy under the Five-Year Plan (2016-2020) to include the promotion of private sector participation in the economy and the reform of state-owned enterprises, and fostering competition, tax reform, financial sector reform and the adoption of largely market-based exchange and interest rates.

4.259. We stress China's active participation in the WTO and its support for initiatives relating to trade, sponsoring the least developed countries in their accession to the WTO and donating funds for the Trade Facilitation Agreement during the Eleventh Ministerial Conference, as well as its

economic cooperation in supporting research and activities relating to the WTO in the context of capacity building in the developing countries.

4.260. We also welcome China's adoption of the Trade Facilitation Agreement and notification of its Category A and B commitments.

4.261. It is in our interest to continue deepening the Integral Strategic Association established in 2014. The association is designed to enable our relations to develop in all directions and cover all

areas, with close cooperation and coordination both at the bilateral level and in multilateral forums. In recent years, China has become a priority partner for Argentina in terms of trade and investment. It is one of the main destinations for our exports, and its investment projects cover

areas of vital importance such as infrastructure, telecommunications and energy.

4.262. Another pillar of our bilateral relations over the past few years has been the Joint Action Plan 2014-2018, which coordinates a number of priority areas for both countries. This being the last year of the plan, in view of a forthcoming State visit of President Xi Jinping to the Argentine

Republic in connection with the G-20 Summit efforts are being made to renew the Joint Action Plan for the period 2019-2023.

4.263. At the same time, given the central importance of the "Belt and Road" initiative both for the current administration and for China's foreign policy, President Mauricio Macri participated, on China's invitation, in the "Belt and Road Forum for International Cooperation" (Beijing, May 2017).

4.264. Over the last 12 years, China rose from being Argentina's third trading partner (after Brazil and the United States) to second place.

4.265. Another key aspect of this strategic association is investment. From December 2015 to May 2018, a total of 15 Chinese enterprises announced 19 investment projects worth a total of


- 38 -

USD 1,323 million for the period. The main sectors involved are, in order of importance: industrial goods, renewable energies, oil and gas, and telecommunications.

4.266. Argentina believes that there are investment opportunities in infrastructure, mining, energy, technology and oil, among other areas, that could be attractive to Chinese enterprises.

4.267. President Xi's State visit to Argentina at the end of November and beginning of December of this year on the occasion of the G-20 summit will undoubtedly help to deepen bilateral relations

between the two countries, following up on previous bilateral presidential meetings at the Nuclear Security Summit in Washington (April 2016), the G-20 Summit in Hangzhou (September 2016), and the State visit to China by President Macri (May 2017).

4.268. In short, the political and economic transformation taking place in Argentina coupled with China's economic growth have created a favourable environment for expanding business, trade

and investment relations between our countries. In this context, we are convinced of the need to

continue working together to promote exports and stimulate FDI growth in strategic sectors.

4.269. Lastly, while reiterating our appreciation of this renewed opportunity to exchange information and comments on China's trade policies and practices, we would like to draw attention once again to the importance of this exercise in transparency from every point of view, and to wish the Chinese authorities a successful conclusion to this Review.

ISRAEL

4.270. Over the last two decades Israel and China have developed increasingly close ties,

including in trade, up to a point in which China has become our third largest trading partner. We believe this is a trend of incremental economic integration, shared with many Members of this Organization and seems quite a natural one.

4.271. In 2017, China's total import and export of goods was up by 11.4% year-on-year, of which, the export was up 7.9%, and the import was up 16.1%. This performance has continued to attract investment into China as it continues to be one of the world's largest recipients of FDI.

4.272. Regarding our bilateral relations, as mentioned earlier, trade continues to rise steadily.

Israeli exports into China consist of Electronics and Components; Minerals and Chemicals; Medical Equipment and Pharmaceuticals; and Electric Machinery – among other various goods and value-added services. The leading sectors of imports from China into Israel are mechanical and electric machinery; textile and footwear; metals, stone and glass. In the period under review Chinese FDI into Israel grew in numbers as well as in quantity of investment.

4.273. The World Bank ranked China 93th in the Starting a Business indicator in 2017, up from

the 136th place in 20165, while the indicator of Protecting Minority Investors ranked it in place

119th in 2017, up from the 134th place the year earlier.6

4.274. China's accession to the WTO in 2001 has been a central milestone for the organization. It brought many benefits to China, but it also resulted in increased responsibilities and heightened expectations for China.

4.275. We welcome the Chinese structural reforms geared towards a greater involvement of the private sector in the economy; reform of State-Owned Enterprises; the promotion of competition;

fiscal and financial sector reform to increase private capital participation – among other structural improvements. We believe that a friendlier, rules-based and transparent business environment would be ultimately beneficial to consumers and traders alike.

4.276. In this context transparency is a core principle of the multilateral trading system and an area where there is room for improvement. For instance, predictable fees or allowing sufficient

5 Information available from the World Bank-Doing Business, available at:

http://www.doingbusiness.org/data/exploretopics/starting-a-business. 6 Information available from the World Bank-Doing Business, available at:

http://www.doingbusiness.org/data/exploretopics/protecting-minority-investors.


- 39 -

time to comment on industry-wide regulations could help actors to prepare for regulatory changes, manage risk better and optimize resources, which will result in further investments and jobs in China. We also encourage China to submit its several outstanding notifications to the WTO. Regarding anti-dumping, while we acknowledge the institutional-level changes resulting in a reduction in measures applied, we continue to note that the number of measures is still high.

4.277. Israel has submitted questions related to licenses, standards and technical regulations, and

product certification. We would like to thank China for its written answers.

4.278. Finally, we would like to note that we are pleased with the possibility to collaborate with China in different areas here at the WTO, but also bilaterally, as we will commence our FTA negotiations in the near future.

4.279. We wish China every success in its Seventh Trade Policy Review.

TRINIDAD AND TOBAGO

4.280. While Trinidad and Tobago and China established diplomatic relations on 20 June 1974, the two countries share historical links that precede official bilateral interaction, dating back to 1806 when the first wave of Chinese immigrants arrived in Trinidad and Tobago. The current Sino-Trinidad and Tobago relationship is characterized by cooperation in a number of areas such as trade, technical assistance, defense, energy, agriculture, healthcare, education, sport and culture. While there is no formal agreement, our interaction is governed by WTO rules and we share a Bilateral Investment Treaty (BIT).

4.281. Dr. the Honourable Keith Rowley, Prime Minister of Trinidad and Tobago, paid an Official Visit to China over the period 14 to 19 May 2018 and met with His Excellency Xi Jinping, President and His Excellency Li Keqiang, Premier of the People's Republic of China. As a consequence, Trinidad and Tobago and China signed a Memorandum of Understanding (MOU) on Cooperation

within the Framework of the Silk Road Economic Belt and the 21st Century Maritime Silk Road Initiative with China. This is the first MOU on the Belt and Road Initiative that China has signed with a country in the Caribbean. Trinidad and Tobago looks forward to continued South-South

Cooperation.

4.282. The CARICOM member States have signaled an interest in China's "One Belt and One Road" initiative as an important cooperation development mechanism in the areas of regional transportation, renewable energy and disaster relief.

4.283. For the period 2014 to 2017, total trade between China and other Belt and Road countries has exceeded US$4 trillion, while China's accumulative investment in these countries near

US$60 billion. Premier Li Keqiang has stated that China is willing to align the Belt and Road Initiative with Trinidad and Tobago's development strategy.

4.284. From 2012 to May 2017, China enjoyed a favourable trade balance with Trinidad and Tobago where Trinidad and Tobago's imports from the Chinese market outweighed the exports. It is worth noting that during the period, Trinidad and Tobago's exports to the Chinese market steadily Increased from approximately TT$121 million in 2013 to TT$644 million in 2015. In 2016 however, there was a sharp decline in exports to approximately TT$367 million. The main products

exported to China are methanol and liquefied natural gas and they accounted for approximately 91% of exports to China in 2016. Imports from China include Warships, Machines to Receive/Convert/Transmit/Regenerate Voice, Image, Data - Parts for Air-Conditioning Machines and Portable Radio-Telephones.

4.285. We take note of China's reduction in import tariffs and its integrated Customs clearance reform; as well as its efforts to open its market in the manufacturing, services and financial sectors. We acknowledge the Government's attempts to establish Pilot Free Trade Zones (FTZs) to

further reform and open-up under new development circumstances.

4.286. We also commend China for its contributions to the WTO's Aid for Trade efforts particularly its financial contributions to support the research and relevant activities of the WTO with developing countries for capacity building in the international trade field.


- 40 -

4.287. We recognize China's efforts to address pollution, alleviate poverty and to address overcapacity in the steel and coal industries.

4.288. China, being the second largest economy in the world and the largest trading partner of over 120 countries and regions, is among the key players in the WTO and we urge China to make greater progress in the area of transparency, one of the key principles of the multilateral trading system. We have submitted a number of written questions to the delegation of China and express

our gratitude for the responses provided.

4.289. Chair, through you, Trinidad and Tobago wishes China a successful Trade Policy Review.

SINGAPORE

4.290. We fully associate with the ASEAN statement delivered by Lao PDR.

4.291. As Chair of ASEAN and country coordinator for ASEAN-China dialogue relations this year, we welcome the continued strong and growing levels of trade, investment and tourism flows

between China and our 10 ASEAN countries. Singapore and China also share longstanding and substantive bilateral economic ties, underpinned by strong trade and investment flows. For the fifth consecutive year, China has been Singapore's largest trading partner, with bilateral trade growing by 17% year-on-year to reach S$137 billion in 2017. On the investment front, Singapore remained China's largest foreign investor for the fifth year running in 2017, with investment flows amounting to almost US$5 billion in 2017. We also note the good progress made on the upgrade negotiations of the China-Singapore Free Trade Agreement, launched in November 2015, and hope

to see it completed by this year.

4.292. 2018 is a special year for China as it marks the 40th anniversary of China's reform and opening-up. Over the past four decades, China has undergone phenomenal growth, and has continually strived to improve its business environment, trade and investment policy regime.

Notably, at the April 2018 Boao Forum for Asia, President Xi Jinping highlighted China's commitment to further open-up its domestic market and forge co-operation with international partners through platforms such as the Belt and Road Initiative. China has also announced the

expansion of market access and relaxation of rules for foreign participation in several areas, such as financial services, automobiles, investment and IT. Singapore welcomes these developments. The full and expeditious implementation of China's latest commitments and undertakings to press on with further and deeper economic reforms will boost regional and global trade and investment. In particular, the recently announced updated negative list for foreign investment, the expansion of Free Trade Zones, the development of Free Trade Port, and the further liberalization of China's

service sectors, such as that in the maritime and financial sectors, could bring new commercial opportunities for our businesses.

4.293. We note China's commitments and contributions to the multilateral trading system. This is evidenced by its active participation in all aspects of the WTO's work including its efforts to

advance issues such as e-commerce and investment facilitation in the WTO. Given China's important role in the global economy and trade flows, its continual commitment to the WTO framework is essential for the long-term health and development of an open and rules-based

multilateral trading system.

4.294. In this light, we urge China to improve its notification record on state-trading enterprises, domestic support, and subsidies, as flagged in the Secretariat report. Transparency is a cornerstone of the WTO's work, and key to ensuring a predictable trading environment. We also hope to see good progress on China's accession to the Government Procurement Agreement, and look forward to welcoming China as a party in the near future.

4.295. We are deeply concerned about the escalation of global trade frictions, and its implications

on the multilateral trading system and the global economy. We positively note China's call for "all WTO Members to safeguard the role of the WTO-centered multilateral trading system", and "firmly oppose unilateralism and protectionism", as contained in its Government report. We continue to

urge restraint from all. Unilateral tariffs, and any resultant tit-for-tat retaliatory actions, would not resolve trade disputes. We call for an accommodation to be found to head off further escalations of trade tensions and for trade disputes to be resolved within the WTO framework.


- 41 -

4.296. Finally, our delegation has always enjoyed excellent working relations with Ambassador Zhang Xiang Chen's very capable team in Geneva. We look forward to continuing this co-operation in our common goal of upholding the multilateral trading system. We wish China a successful 7th Trade Policy Review.

RUSSIAN FEDERATION

4.297. China is one of Russia's main trading partners. Russia's trade with China has expanded

significantly. In 2017, the bilateral turnover had increased by more than 31% in comparison to 2016 and showed diversified commodity nomenclature. Bilateral trade in services between Russia and China increased by 19.8%. New areas and formats for further cooperation have enjoyed rapid development, including at the level of Eurasian Economic Union. Trade and Economic Cooperation Agreement between the People's Republic of China, of the one part, and the Eurasian Economic Union and its member States, of the other part, has become another cornerstone of our economic

relations.

4.298. We see lots of new opportunities to widen and diversify our trade and investment relationship with China. Trade in services and investment are of particular interest for expanding our cooperation. Thus, Russia attaches great importance and attention to the trade regime of China and continuous efforts of Chinese authorities to improve China's trade policies and practices making them more transparent, accountable and non-discriminatory. We are pleased to see China's tangible steps in trade facilitation and simplification of procedures. Much work has been

done.

4.299. We look forward to further improvements with a view to cultivate a stable regulatory environment for business communities. In particular, much importance is attached to trade policy areas related to innovation and technologies, IPR, transparency, as well as matters related to ensuring competitive environment in the market.

4.300. Russia commends China for the important leadership role it has played within the WTO since its accession in 2001. We highly appreciate and share China's continuous support for

multilateral trading system as embodied in the WTO, which is systematically voiced on the multiple occasions of the BRICS, the Shanghai Cooperation Organization, the G20, the APEC and other international fora.

4.301. Russia fully supports and encourages a dialogue on those thorny issues we are working on together with our Chinese partners. We believe that together we can do more to promote proper functioning and development of global markets.

4.302. We see that sometimes actions by individual Members put other Members in a tough spot. However, we are of a view that all trade conflicts should be resolved in full compliance with the rules and procedures of the WTO. Russia commends the ongoing efforts carried out by China in this regard.

4.303. The Russian Federation appreciates China's active involvement in a wide range of activities at the WTO and intention to find a compromise on many topics. We look forward to working together closely to upkeep effective functioning of the Organization, to further contribute to the

WTO for maintaining and strengthening the MTS and for the global economy.

4.304. To conclude, the Russian Federation appreciates the opportunity to participate in this review. We would like to thank the delegation of China, the Secretariat and, of course, our esteemed Discussant, for their hard work and wish partners from China a successful trade review.

CHILE

4.305. Chile is particularly interested in this 7th Trade Policy Review of China, a country whose civilization, over thousands of years of history, has been so closely linked to the development of

production and trade in the world.

4.306. Bilateral relations between Chile and China date back to 1970, when our country became the first in South America to establish diplomatic relations with China.


- 42 -

4.307. This link has proven particularly stable over the years, as well as fruitful: together we promote greater integration through the establishment of political, commercial and cultural dialogue at the highest level. 2016 saw the creation of the Integral Strategic Association with China, a move which helped to drive the Joint Action Plan and set up the Binational Standing Committee, the main mechanisms for sectoral coordination and dialogue at the bilateral level, also reflected in the constant exchange of official visits by the two countries' highest authorities.

4.308. Our economic and trade relations revolve around a comprehensive free trade agreement, in force since 2006 – making Chile the first country outside the Asian continent to conclude an agreement on that scale.

4.309. The Agreement has become a central component of our bilateral relations, and thanks to its successful implementation and administration, China has become firmly established as Chile's main trading partner, with a total value of US$35 billion traded in 2017.

4.310. Chile exports to China during 2017 totalled approximately US$19 billon, a growth of 1.1% since 2012. Mining exports account for an important share of those exports, with a total of approximately US$15.5 billion in 2017. Agricultural exports account for a growing share of our export basket as well: for example, fruit, wines, salmon, fish-meal, etc. This growth of exports is also reflected in the increasing number of Chilean companies exporting to the Chinese market.

4.311. Imports from China in 2017 totalled US$15.5 billion, representing a growth of 1.6% for the period 2012-2017. Chile's main imports from China included mobile telephones (1,223 million),

computers (435 million), automobiles (274 million), and footwear (225 million).

4.312. This growth can be seen not only at the bilateral level, but also at the multilateral level, where we participate together in various international organizations and forums, for example, the Forum of East Asia-Latin America cooperation (FELAC) and, this year, the G-20. We also note with satisfaction China's observer status in the Pacific Alliance Integration Process.

4.313. The Asia Pacific Economic Cooperation Forum (APEC) deserves special mention: in 2019 it will be organized by Chile, and we hope to work hand in hand with China, particularly in pushing

forward the initiatives that Chile will be proposing as host country.

4.314. We recall that in 1999, Chile was the first Latin American country to support China's accession to the WTO, and since joining, China has become an extremely important player in this Organization. This has brought with it enormous responsibilities as regards both the implementation of the WTO Agreements and the negotiations.

4.315. This trade policy review has brought to light the recent reforms implemented by China. Of

particular interest is the introduction of a new vision of development and the commitment to establishing an economy open to the world. We also note the development strategy pursued in the last few years, which saw the implementation and the planning of major structural reforms,

especially in the areas such as trade facilitation, the creation of a more attractive investment environment, the strengthening of IPR protection, and the promotion of a platform for international cooperation.

4.316. We urge China to continue the policy pursued for the past 40 years of reforming and

opening up its economy, particularly as regards both agricultural and fisheries subsidies. Similarly, we stress the need to step up compliance with WTO notification and transparency commitments.

4.317. Chile has submitted 21 questions in connection with this trade policy review, in areas such as services, anti-dumping, competition policy, state-trading enterprises, steel, sanitary and phytosanitary measures, etc. We greatly appreciate the replies to those questions.

4.318. At the WTO, Chile and China have also been working together on a series of initiatives, particularly in the areas of e-commerce, investment facilitation and the promotion of MSMEs. In

this spirit, we also hope to reach substantive agreements on agriculture, fisheries subsidies and

domestic regulation in services, all necessary components for strengthening the WTO.


- 43 -

4.319. Multilateralism requires a commitment from all Members to an open, transparent, inclusive, and non-discriminatory system based on clear rules under which to promote free trade in goods and services. However, that commitment must be in keeping with the challenges facing us today, particularly when it comes to those of us that currently figure prominently in international trade.

4.320. Finally, we wish China a successful seventh trade policy review.

INDIA

4.321. China with a share of 9.8% in international trade and contributing around 30% of the expansion in the world economy during the period, is a key driver of global trade and growth. During the period under review the Chinese economy continued to grow at around 7% per year, though adjusting to a 'new normal' of moderated growth with the rebalancing due to consumption,

internal demand and larger share of services in the GDP, which exceeded 50% for the first time in

2015. China also continues to be one of the largest recipients of foreign direct investment. In raising people out of poverty, enhancing economic growth and creating state of the art infrastructure, China has clearly had a dream run in the last two decades! It is also gratifying that China has been a strong and steadfast supporter of the rules based multilateral trading system embodied in the WTO.

4.322. India and China share close and long-standing ties. In recent years our multifaceted relationship has deepened and strengthened in all areas with regular high level political exchanges

between the two countries. Both countries have a broad based institutional framework in place to strengthen trade and investment ties, which include a strategic economic dialogue, working groups and other fora. Trade between both countries has grown rapidly with total trade of US$89.6 billion in 2017-18.

4.323. We thank the Chinese delegation for the replies provided to the questions we had raised.

While these are being reviewed, let me underscore some specific issues and concerns which affect the vast underlying potential of our trade relations.

• Trade is skewed in favour of China with it having a trade surplus of US$63 billion. This large and growing deficit is difficult for India to sustain and therefore, serious efforts need to be made to remedy the situation.

• Exports from India of agriculture products, including bovine meat, face challenges due to stringent and often opaque regulatory requirements.

• One important area that requires to be addressed is exports of non-basmati rice from India

to China. It is encouraging that a protocol on export of rice was signed during the visit of the Indian Prime Minister to China in June 2018 and Chinese experts are likely to visit India soon for approving rice mills. Early completion of this process is necessary as it not only

meets a long-standing demand of India but will also help increase exports from India to the mutual benefit of both countries.

• India is one of the largest manufacturers of generic medicines and exports to more than 120 countries around the globe. However, in spite of the expansion of the Chinese public health

programme, exports of pharmaceuticals from India to China have remained modest. This is in large measure due to the inability of Indian pharma companies to obtain market approvals in China for various generic formulations due to complex and onerous regulatory requirements. This needs to be addressed and an important step to expedite this process would be for China's Food and Drug Administration to hold workshops for Indian pharma companies to enable them to build capacity to file requests for market approvals, which should then be accorded in a time bound manner.

• Indian companies provide IT and IT-enabled services to a large number of companies including a majority of the Fortune 500. This has brought about a transformational change in

the competitiveness of manufacturing and banking entities that have accessed these services. There is great scope for collaboration between Chinese state-owned enterprises and Indian IT sector which can provide state of the art custom designed solutions. More


- 44 -

openness of Chinese SOEs to accessing these services can be an area of partnership. Further, in the services sector, the challenges for Indian companies include complex requirements for participating in contracts of the state-owned enterprises and issues related to qualification requirements, licensing and taxation. Indian professionals are also facing visas restrictions like permits being granted only for a year. We would encourage the Chinese authorities to look into these issues to resolve them early.

• China is today the largest global investor, but its foreign direct investment in India remains very modest. The total Chinese investment in India aggregates to US$1.74 billion and annual investments are of the order of US$100 million. The increased liberalization in India's FDI regime and the improvement in its global rank for ease of doing business, makes it an attractive destination for global investment. There is, therefore, a great potential for increasing Chinese investment in manufacturing and infrastructure sectors in India.

4.324. India and China also work closely in multilateral fora like BRICS, and in a variety of other institutions. In the WTO, as two large developing countries, we have core common interests and concerns on issues related to obtaining successful outcomes in addressing the historical imbalances in the Agreement on Agriculture and keeping development central to our work.

4.325. I would wish to place on record our deep appreciation for the constructive contribution of Ambassador Zhang Xiangchen and his team at the Chinese mission in Geneva in the ongoing work of the WTO.

4.326. We look forward to working closely with the authorities of China for further expanding and harnessing the potential of our trade and investment ties for mutual benefit. We wish the delegation of China a productive and successful TPR.

BRAZIL

4.327. China's economic development has been a remarkable success story. Brazil commends China for the more recent efforts to rebalance its economy. We welcome the adjustment in the current account – the surplus now standing at 1.3% of GDP compares with a level of 9.1% in

2008. While further trade liberalization and reforms would be welcome, including in areas of excess capacity, we are confident that China will continue to play a positive role in the world economy. We value the message given by VM Wang, highlighting that China is committed to deepening reforms and opening-up.

4.328. China is a key partner for Brazil – bilaterally; in fora such as the BRICS and G20; and here at the WTO. Since 2009 China has become the main destination for Brazilian exports. It imported

US$47.4 billion from Brazil in 2017 – about 22% of our national exports.

4.329. At the same time, China continues to enhance its participation in Brazilian total imports. It has now become our main source of imports – or second, if the EU is taken as a group - with a

total of US$27.3 billion in 2017.

4.330. The importance of our bilateral economic relations has consistently expanded beyond trade. According to Brazilian [Central Bank] data, in 2016 the Chinese FDI stock in Brazil reached US$12.4billion. On top of that, in 2017 the net flow of additional Chinese FDI in Brazil was

US$10.9 billion.

4.331. In this overall positive picture, there are some important topics that require our attention. Around 80% of Brazil's exports to China remain limited to commodities, in particular soybeans, iron ore and oil. The one industrial sector which stands out in Brazilian sales to China is that of airplanes and helicopters, but accounting for less than 1% of the total. Brazilian exports to other markets – such as Latin America, the US or the EU – show a much higher participation of industrial products. The composition of Brazilian exports to China does not reflect the diversification of our

economy. Brazil looks forward to continuing our joint efforts with China in order to promote the expansion and a more balanced diversification of bilateral flows.

4.332. In the area of trade remedies, we regret the application of provisional anti-dumping duties against poultry meat and the safeguard measure against sugar. Regarding chicken meat, the


- 45 -

investigation failed to produce evidence that there was dumping, injury and causal link. Our exports account for 5% only of total Chinese imports. The Brazilian poultry producers have never been subject to definitive AD duties by any of the WTO Members. We trust that the Chinese authorities will terminate the investigation without the application of definitive measures.

4.333. In the case of sugar, we continue to seek clarification on the administration of the measure, as well as wider access to statistics, in order to make possible a better assessment of

the situation that would set the basis for the resumption of Brazilian exports according to historically consistent volumes. In both cases – poultry and sugar -, we encourage China to normalize trade flows as soon as possible.

4.334. With regard to the licensing or authorization procedures related to commercial aircraft sales, we would welcome more predictability in the administrative process and clarity on documentation requirements.

4.335. China has become a crucial player in this Organization and we value its leadership and expressions of commitment to the rules-based MTS. China's contributions are crucial for the preservation and strengthening of the system.

4.336. In this spirit, we encourage China to update notifications on agricultural domestic support. Brazil would also welcome further streamlined procedures for the approval of SPS protocols for beef, pork and poultry, as well as for the accreditation of establishments to export to China.

4.337. To conclude, I want to thank China for its responses to our written questions. We wish

China a very successful and productive Trade Policy Review.

NORWAY

4.338. By virtue of the size of its economy, China is a major trading partner for most WTO

members. What China does on the trade front matters. Both in economic and systemic terms.

4.339. Norway appreciates that China in its TPR report clearly states that China will actively participate in global economic governance, firmly safeguard the multilateral trading system and oppose unilateralism and protectionism. We also note that China will spare no efforts in making

globalisation more open, inclusive, and balanced so that its benefits are shared by all. Norway looks forward to China's continued engagement on these important issues.

4.340. Norway notes China's expressed willingness to contribute to promote liberalization and facilitation of global trade and investments. We look forward to concrete manifestations of this policy statement and to further openings of the Chinese market and China's strengthened compliance with WTO rules and transparency commitments. We also share the concerns expressed

by others on overcapacity and the role of SEOs.

4.341. Chair, China highlights the importance of trade and development. If WTO Members are to make progress in WTO negotiations and take steps toward strengthening the system that we all depend on, open debates on the interaction between trade and development will be essential. This includes a much-needed debate about the differences among developing members and how emerging economies, including China, can and must contribute.

4.342. Norway looks forward to continue working with China to advance WTO negotiations.

However, safeguarding the negotiating function of the WTO means that negotiating proposals must be carefully calibrated to contribute to negotiated outcomes. This responsibility weighs on our collective shoulders. Conditioning discussions on a work program for future negotiations on domestic support in agriculture on elimination of current AMS of developed members does not fulfil this test.

4.343. Norway thanks China for its efforts to implement the Agreement on Trade Facilitation as one of the first members. We look forward to China's accession to the Agreement on Government

Procurement, but believe a revised - and ambitious - Chinese offer is needed to move this process forward.


- 46 -

4.344. Chair, China's protection of intellectual property is one of the underlying issues creating trade frictions. IPR protection continues to be a concern for foreign companies, and Norwegian companies are no exception. Despite some improvements, there is still much work to be done.

4.345. Norway appreciates the bilateral cooperation with China on government level in several fields. Norway is hopeful and confident that ongoing processes will lead to increased trade and business cooperation. China and Norway are in the process of negotiating a bilateral FTA. Norway

looks forward to concluding a comprehensive and not least, modern, free trade agreement with China.

4.346. Exports of seafood to China is one of the extensive areas of economic interaction between our two countries. Norway has some specific concerns on issues such as the CIFER system where establishments need to be registered in order to export seafood to China. Furthermore, procedures for approval of imports of new seafood species and other foodstuffs are cumbersome and time

consuming. We will study China's replies to our written questions regarding these issues.

4.347. Chair, Norway welcomes the active participation of China in the negotiations on fisheries subsidies. All Members must show political will and make the necessary domestic policy adjustments to implement all elements of the mandate in SDG 14.6. Norway sees the TPR as an additional source of information about each Member's fisheries subsidy regime, and, as we have now understood, an updated subsidies notification has been put forward by China and we will study that too.

4.348. Let me also mention fossil fuels subsidies reform. Norway welcomes Chinese support for the G20 commitment and agenda in this field.

4.349. According to China, the WTO should discuss new issues with development implications such as investment facilitation and e-commerce, to respond to the expectations of the business community as well as to maintain its relevance in global governance. Norway thanks China for its

participation in the joint initiative from Buenos Aires on investment facilitation for development and its inclusion in the joint ministerial statement on services domestic regulation. We also

appreciate that China takes active part in other discussions including on e-commerce. Norway believes that addressing these – and other pressing – issues is part of a necessary update of the WTO in light of the challenges of the 21st century.

THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU

4.350. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu commends China on its continued commitment to trade liberalization and economic reform in this fast-changing and

complex global trading environment. Its efforts in this regard are especially welcome in areas such as the financial sectors, customs procedures, and free-trade zones. We believe it is crucial for China to push forward even further with its programme of reforms towards establishing itself as a fair and open economy.

4.351. Here, I would just like to touch on certain areas of China's trade policy where we do have some particular concerns, and where we look to China to build on its progress to date if it is eventually to fulfil its responsibilities as a Member of the global trading system:

4.352. Firstly, in the area of foreign direct investment (FDI), we would all agree, I think, that FDI is an essential driver of growth and development. In the broader context of economic and regulatory policy though, adequate protection of intellectual property rights (IPRs) are equally important in terms of attracting direct investment.

4.353. We acknowledge China's efforts at liberalizing FDI and protecting IPRs with its revisions to the Catalogue for the Guidance of Foreign Investment Industries in 2017, to reduce the number of restricted sectors and strengthen the protection of IPRs.

4.354. However, while China has been upgrading its economy and attracting more FDI, the fact

that technology transfer has now been an issue that calls for our special attention. We would like to see China moving towards a more ambitious open and level playing-field. Also, we would urge


- 47 -

China to re-double its efforts with regard to enforcement, including the fight against counterfeiting and copyright piracy in particular.

4.355. Secondly, the services sector, which accounts for more than half of China's national economy, has been a major factor in fueling economic growth over the period under review. We have noted that a number of regulatory changes have genuinely helped to liberalize the telecommunications and financial sectors. While recognizing Members have legitimate right to

regulate, we are in favor of less trade restrictive approaches. What is unfortunate, however, is that some of the new laws and measures, especially in the telecommunications sector, contain elements that actually go against market-opening and the principles of transparency.

4.356. If we look, for instance, at China's cyber security laws and the restrictions on Virtual Private Networks (VPNs) this year, we must question whether they are in compliance with international laws and regulations, and this raises serious concerns about the potential impact on

trade. Further reforms to promote fair and open trade are needed urgently if China's current momentum is to be sustained.

4.357. Thirdly, while fully recognizing China's legitimate ambition to transform and upgrade its economy, certain initiatives, like the "Made-in-China 2025" programme, immediately raise concerns about potential trade barriers for foreign companies, in the form of local content requirements and discriminatory elements, for example.

4.358. In addition, on the topical subject of overcapacity, we welcome the steps that China is

taking as part of the world-wide effort to curtail capacity in the steel sector, which causes prices to fall and creates major problems for many other countries. Given its key role in the global steel market, it is essential that China translates the plans it has announced into real actions to help resolve these issues as soon as possible.

4.359. And, on a more general and long-standing point, we once again urge China to fully comply

with its commitments under its Protocol of Accession in a number of key areas, such as transparency and notifications.

4.360. Finally, I just want to touch briefly upon the issue of fossil fuel subsidies. This is an area of increasing importance for all Members. We absolutely welcome China's continuing support for the G20's agenda and commitments on this important topic. We would strongly encourage other G20 members to similarly volunteer for a peer review in order to increase policy transparency and the sharing of lessons learned.

4.361. On the bilateral front, we have very close and long-standing economic ties with China. The

level of two-way trade-flows between us remains strong at the present time. At the end of 2017, for example, China was our largest trading partner, accounting for 30% of our total trade, and it is one of the major destinations for our overseas investment as well. We very much hope that these levels of bilateral trade and investment will continue to grow in the future.

4.362. To conclude, we appreciate the opportunity to participate in this review of China's trade policy. To sum up, perhaps, with one final message, we strongly encourage China to hold firm to its strategy of economic and trade policy reforms over the coming years.

REPUBLIC OF KOREA

4.363. This year holds a significant meaning as it marks the 40th anniversary of China's reform and opening. President XI Jinping expressed his firm commitment to upholding the principles of China's reform and opening at the 19th National Congress of the Chinese Communist Party as well as at the Boao Forum which took place in April this year.

4.364. In the same vein, China has recently been making efforts to expand its imports including by drastically lowering its import tariffs on autos and consumer goods and holding the

International Import Expo. We highly regard these efforts on the part of China.


- 48 -

4.365. Moreover, China adopted a negative-list measure in June this year to ease restrictions on foreign investment, including reducing the number of foreign investment-limited items from 63 in 2017 to 48 in 2018.

4.366. Korea also greatly appreciates the contributions made by China to the WTO. China has agreed on the expansion of the ITA and ratified WTO Trade Facilitation Agreement. Recently China has been very active in the WTO discussion on E-commerce. As President XI promised to make

faster progress toward joining the WTO Government Procurement Agreement, Korea hopes that China's accession process to GPA will be accelerated in the near future.

4.367. However, Korea is concerned about recent escalating uncertainties among major global trading partners and subsequent instability in the global trading environment. Korea believes that a stable and open trade policy is a necessary basis for the expansion of global trade and the establishment of a fair-trade order.

4.368. Bilateral economic relations between Korea and China have been on the rise since the Korea-China FTA took effect in 2015. These relations are now expected to develop one stage further, through the follow-up negotiations for the Korea-China FTA on services and investment that were launched in March this year.

4.369. In particular, as President XI emphasized the opening of the financial sector at the Boao Forum, we hope that China accelerates the opening of its services market, including the financial sector, and strengthens investor protection.

4.370. I would like to make some comments in regard to the actual implementation of the Chinese trade policies for openness on the ground.

4.371. First, I would like to voice some concerns over on-going restrictive measures in certain services areas of China including tourism. In particular, there still remain restrictions on the

promotion of group tours and the gathering of tourists in groups to Korea. I hereby ask for China's efforts to further open this area of services.

4.372. Secondly, there are concerns over discriminative measures still in place between Chinese

domestic companies and foreign-invested companies. Korean companies are being excluded in regard to the new energy vehicles (NEV) battery issue. In this light, I would like to call China's attention to this matter for the equal treatment of both domestic and foreign companies in China.

4.373. Lastly, some Korean companies in the distribution and services sector have had difficulties in operating their business and obtaining licenses from Chinese authorities. In this regard, I would like to ask for China's efforts to improve the foreign investment environment.

4.374. Now in Beijing, Korea and China are holding the second round of follow-up negotiations for the Korea-China FTA on services and investment. This shows the continuous efforts made by the

two countries for further strengthening their bilateral economic relations. I hope that such efforts by each and every Member made for the purpose of open and fair trade will spread globally.

4.375. With this, I would like to conclude by expressing our appreciation to the delegation of China for its hard work and wishing the delegation every success in its TPR.

REPUBLIC OF MOLDOVA

4.376. As presented in the Report by China, this Trade Policy Review coincides with the celebration of the 40th anniversary of China's adoption of the reform and opening-up policy. We welcome China's ambition, as stated in the Government Report, to engage itself "in the development of an open economy in a wider range and more areas, at deeper level and higher standards, and expediting the transition from opening up itself to promoting the opening up of the world". Being a major driver of global economic growth, one of the largest recipients of FDI and overseas investor, and the top trading partner for over 120 countries and regions, fair and

transparent trade policies implemented in China are vital given their impact on global economy. We therefore encourage China to continue its path of structural economic reform, pursuing opening-up of the economy to ensure its ongoing development.


- 49 -

4.377. China's growth has been stable during the review period, at around 7% per year, as the Government focuses on the quality and sustainability of growth in line with the structural economic reforms undertaken under the 13th Five-Year Plan.

4.378. We note further opening to FDIs, with the 2017 revision of the Catalogue of Industries for the Guidance of Foreign Investment, which introduces a national "negative" list to guide foreign investment and cuts the number of special administrative measures restricting foreign investment

from 63 to 48, compared to the previous 2015 version. We strongly encourage China to further lift barriers to foreign investment.

4.379. In the same spirit, we commend China on the reform to harmonize its customs procedures and the implementation of the single window system, which has considerably reduced clearance times for imports and exports.

4.380. We note positively China's continued efforts to strengthen IPR enforcement both at the

administrative and judicial levels. IPR protection continues to be an important prerequisite for investment attraction and opening-up of the economy.

4.381. We commend China for its active role in the WTO as Member of the Information Technology Agreement and Trade Facilitation Agreement, and acceding Member to the Government Procurement Agreement. We welcome the submission of SPS, TBT, trade facilitation notifications, and strongly encourage China to submit its outstanding notifications on agriculture domestic support and state-trading enterprises. We look forward to the official circulation of the

recently submitted notification of subsidies.

4.382. We would also like to note that as China's economy has been shifting from manufacturing to services, e-commerce became an important development tool empowering SMEs and connecting the country.

4.383. We welcome the expansion of the network of free trade agreements concluded by China with the Maldives and Georgia. In 2017, Moldova and China have initiated negotiations of a Free Trade Agreement in goods. We hope that the next negotiation round, scheduled to take place

during the second part of this summer, will set a clear negotiation framework which will allow for bilateral opening of markets in mutually beneficial areas of interest.

4.384. Bilateral economic and trade cooperation between Republic of Moldova and China have been witnessing an ascending dynamic over the past years. During the first 4 months of 2018, the volume of exports from Moldova to China has increased by 49.56% compared to the same period in 2016, similar to the volume of imports from China to Moldova, which increased by 41.04%.

Main products exported from Moldova to China are wine, beer, wheat, textiles. Imports from China to Moldova include electrical machinery and equipment, equipment for cellular and wireless network, machinery and mechanical appliances, chemical products, and vehicles. 84 companies with Chinese capital are currently operating in Moldova.

4.385. Key areas of cooperation between Moldova and China are information technology, health, transport, education and energy. China offers technical and financial assistance to the Republic of Moldova in these areas, and a new agreement signed in 2016 provides for a new grant of about

€8.1 million. Important projects are being implemented in Moldova with the support of the Chinese Government in customs infrastructure and control equipment. Moldova reiterates its openness to collaborate with Chinese companies in key sectors for the Moldovan economy, such as infrastructure, energy and telecommunications, including in the creation of the national fiber optic data transfer network.

4.386. By signing a Memorandum with the Chinese Government in 2014, Moldova is strengthening economic cooperation within the Silk Road Initiative. In addition, in May 2017 Moldova and China

signed the Initiative on Promoting Unimpeded Trade Cooperation along the Belt and Road.

4.387. We look forward to extend our cooperation ties with China in areas mutually beneficial for

our people. We thank China for the replies to our questions, which we will study carefully and revert back if necessary in our bilateral dialogue.


- 50 -

4.388. We express our appreciation to the whole delegation of China, led by His Excellency Vice Minister Wang Shouwen, for their participation in this important exercise and we wish China the utmost success during its 7th Trade Policy Review.

EGYPT

4.389. As the Secretariat report indicated, China has taken many positive measures to improve the performance of its trade policy, we believe that these measures will enhance the growth

potential of the foreign trade between China and its trading partners. The most important of these measures are the following:

• Clearance times were reduced to an average of 16.7 hours in 2017, from over 22 hours in 2016, and about one third of imports are now declared through single windows.

• A tariff reform implemented in December 2017 reduced applied MFN tariffs for some 200 consumer products.

• The average applied tariff on non-agricultural products also fell slightly since 2013, to 8.5%. The percentage of tariffs that exceeded 15% (international tariff peaks) decreased to 13.9%, from 14.4% in 2015, while the percentage of tariffs subject to domestic tariff peaks fell slightly, to 1.8%.

• China continued to provide a number of financial incentives to different sectors and industries in order to accelerate transformation and upgrading of traditional industries, foster infant industries, stimulate innovation, promote development in remote areas,

enhance competitiveness of small and medium enterprises, and attract FDIs. Furthermore, support was also granted with a view to protecting the environment, reducing emissions, and conserving energy.

4.390. All these measures contributed to the fact that The Chinese economy continued to be an important engine of global growth; as it accounted for around 30% of global economic expansion during the review period. Real GDP growth was 6.7% in 2016 and it is expected that real GDP will grow by around 6.8% in 2017.

4.391. On the bilateral front China and Egypt have been enjoying flourishing multifaceted relations that have reached the apex with the establishment of the bilateral comprehensive strategic partnership in 2015. In the economic domain, trade volume between the two countries continued to increase in 2017 to reach US$9.3 billion, and the Chinese investments in Egypt are increasing in different fields. Egypt is looking forward to developing the bilateral economic and trade relations with China and to attract more Chinese investments to Egypt's mega projects.

4.392. Finally, we have put one question to China on how its legislations deal with the issues of authorized operators, procedures for goods in transit, as well as, promoting the use of single

windows and await the replies with interest. In closing, Egypt strongly commends China for achieving an impressive economic performance in the period reviewed, and we wish the delegation of China a very successful trade policy review.

INDONESIA

4.393. The People's Republic of China, as the major driver of global economic growth, has played

critical roles in the multilateral trading system. Indonesia and China are benefited from the progress of bilateral economic co-operation through years. Despite the trade deficit remain a prominent issue, trade between China and Indonesia has been increasing and heading toward a state of balance. The trade deficit between Indonesia and China has been narrowing. In 2015, Indonesia experienced US$14,4 billion trade deficit. In 2016, that deficit was slightly decreased to US$14,01. Even though experiencing another significant trade deficit, Indonesia recorded a better performance with a decrease of 9.2% or US$1,3 billion of deficit to US$12,7 billion in 2017.

4.394. China is Indonesia's one of main source of foreign investment, which reached US$1,3 billion in 2017. The investment was allocated in over 763 projects. Hence, Indonesia hopes that more investment from China will come to Indonesia in the coming years.


- 51 -

4.395. Indonesia commends China's efforts and commitments to more closely integrated into the global trading system. Beside the strong and positive economic ties between Indonesia and the People's Republic of China that have been achieved during the last decade, we still find some unnecessary barriers to trade in China. We found that China is still maintaining and adopting several restrictive measures, such as Administrative Measure on Cosmetics Labeling as well as the Cybersecurity law. Such barriers have prevented trade relations between the two countries from

reaching its optimum outcomes.

4.396. In addition to that, Indonesia has concerns on China's notifications of its non-tariff measures which actually limit Indonesia's goods to enter China's market. Indonesia experiences several barriers that hinder goods to enter China's market including seaweed, exotic fruits, and other food and beverages' goods. This is in contrast to the fact that on average in every sector, China recorded a four times level of trade compared to Indonesia.

4.397. It is on the expectation of Indonesia that both Members can increase the balance of trade among each other, so each Member can bring more benefits to the development of internal economy in the midst of global challenges and increasing skepticism to international trade practice. Indonesia also expects China to continue to make greater contribution to the multilateral trading system though fair and transparent trade policies.

4.398. Finally, I would like to conclude my remarks by expressing once again my profound appreciation to China's delegation for its hard work, and wish China every success in its seventh

TPR.

ECUADOR

4.399. Ecuador has a major interest in participating in this review, China being one of our main trading partners in terms of both trade flows and investment.

4.400. In 2017, China was the sixth destination for Ecuador's non-petroleum exports with a share of 4%, i.e. US$430 million. Petroleum exports to China totalled US$342 million that year, 5% of our total sales of crude.

4.401. As regards imports, China is Ecuador's main supplier: imports reached US$3,477 million in 2017, or 22% of our country's total imports.

4.402. As a result, the trade balance between Ecuador and China has shown a deficit for Ecuador which exceeded US$2,700 million in 2017.

4.403. Ecuador's main exports to China are shrimp, bananas, fish-meal, wood and copper scrap.

4.404. Meanwhile, Ecuador's main imports from China are mobile telephones, automobiles, iron

and steel products, televisions, toys and motorcycles.

4.405. In 2017, China's investments in Ecuador reached USD 85 million, or 14% of total foreign investment in our country. They focused on mining and quarrying (52%), business services (25%), and construction (16%).

4.406. China is Ecuador's main source of external financing, and has been involved chiefly in hydroelectric, energy, transport, education, health and infrastructure projects.

4.407. Let me turn briefly to the report submitted by the Secretariat for this trade policy review,

and highlight China's role in world trade.

4.408. As regards the external sector, although 2016 saw a decrease in the value and share of its exports and imports in GDP, there was a significant recovery in 2017, and its exports and imports now account for about 11% of world trade.

4.409. China's new type of growth based on consumption, domestic demand and services is already having a significant impact at the global level.


- 52 -

4.410. The sectors that have grown the most in this context are e-commerce and tourism.

4.411. It is important to note that apart from the obvious economic growth recorded during the review period, income inequality and poverty diminished. China has clearly been able to take advantage of the opportunities offered by globalization.

4.412. Ecuador emphasizes the importance of the exercise in transparency and insight into public policy afforded by trade policy reviews at the WTO.

4.413. In this connection, we would like to highlight one of our questions concerning the "Measures for the Administration of Organic Product Certification", in which we seek to obtain further information on the certifications necessary for the products in question. For a dollarized economy like Ecuador's, increasing exports is a permanent task.

4.414. Lastly, we would like to thank the Chinese delegation in advance for its replies to our questions on specific aspects of its trade policy, which will provide invaluable inputs for

strengthening relations between our countries.

4.415. Let me conclude by wishing the entire delegation of China a successful trade policy review.

TURKEY

4.416. China's accession to the WTO has been a remarkable shift both for China and world economy. Its share in world trade reached around 13%, which was only 4% before its accession to the WTO. Despite the country's recent slowed growth, a with a GDP growth around 7%, China continues to be the main source of global economic growth with a 30% share. It is sure that the

multilateral rules-based trading system has enormous benefits to China's economy. Booming exports has led millions of people out of poverty and has positioned China as one of the pioneer countries in global trade. On the other hand, the benefits of China's accession to the WTO for the

global economy are also undeniable.

4.417. After a long period of high growth magnified by exports, Chinese economy is undergoing significant structural changes and it adjusting to the "new normal". Through devising the 13th Five Year Plan, China is now shifting from an export led growth to an economy which is more

concentrated on innovation, consumption and services. We consider that this "new normal" perspective may create more efficient and resilient growth, help to escape middle-income trap and mitigate the challenges of Chinese economy.

4.418. During the review period, we see that China implemented several reforms pursuing to strengthen the trade and investment liberalization and facilitation. In addition to its efforts in multilateral fora, we also note that China has progressively expanded its free trade network

through FTAs. Establishment of free trade zones also contributed to this positive trend. China also took measures to simplify its customs procedures, including the effective implementation of the

single window system. We also commend the efforts of China to smoothly implement the Trade Facilitation Agreement and to realize all its Category B commitments until 2020.

4.419. As identified in Secretariat report, in recent years, excess capacity in some sectors have continued to increase in China, while recognizing Chinese efforts to curb their effects. It is no doubt that overcapacity hurts global production and hampers the medium-term growth and

financial stability in China as suggested in Secretariat Report.

4.420. Secondly, we know that through the 13th Five-Year Plan, China already declared its willingness to follow structural economic reform program that aims to enhance the power of private sector in the economy and to reform State Owned Enterprises. Agreeing that China's Guidelines on Deepening SOE Reforms may provide a comprehensive blue print, we also underscore the importance of the implementation of the efficient reform policies swiftly to deal with the challenges posed by the SOEs.

4.421. On intellectual property rights, we recognize the efforts of China to enhance the capacity to protect IPRs and to ensure the legal framework for this, such as amendments trademark and


- 53 -

patent law and setting up new intellectual property courts. However, these efforts beg further actions to enforce rules and laws in this field.

4.422. China is both one of the biggest importers and producers of agriculture products in the world, where the share of agriculture in total employment remains high at 27% as of 2017.

4.423. Due to high population and rapid increase in urbanization, market price supports and public stockpiling are commonly used policies by China for assuring food security, regulating and

stabilizing the markets. In this respect, we should recognize that the management of its stocks in certain products such as wheat, rice, maize and cotton is of extreme importance with respect to the stability in world markets. We believe that more predictability is needed in this issue.

4.424. Turkey's bilateral trade with China has almost tripled in the last ten-year period. In 2017, bilateral trade volume exceeded US$26 billion US dollars and China is now Turkey's second trade

partner. However, the bilateral trade is growing in a very unbalanced way. This uneven trade

pattern is not sustainable in the long run for both Turkey and China, which we believe has to move towards a balance.

4.425. To overcome this and sustain long-reaching bilateral trade relations, we believe that we have to develop new instruments. In this regard, we also expect China to pursue and adopt policies towards mutual benefit and balanced trade. In this vein, we appreciate China's decision to organize the first China International Import Expo this year, where also Turkey will take its place.

4.426. For "One Belt One Road" Initiative, Turkey and China are exploring cooperation areas and

trying to identify projects to their mutual benefit. As a founding member of the Asian Infrastructure Investment Bank (AIIB), Turkey is willing to cooperate with China in infrastructure projects.

4.427. We see China as a key player in the WTO whose active role in further advancing the

multilateral trading system is critical. In this regard, we will continue work together with China towards an open and rules based multilateral system.

4.428. We wish China a successful completion of its Seventh Review.

THAILAND

4.429. In starting off, Thailand would like to associate ourselves with ASEAN's statement delivered by Lao People's democratic Republic.

4.430. Thailand and China have maintained the close and strong bilateral relations, underpinned by strong trade and investment flows. China has been Thailand's number one trading partner since 2013 and bilateral trade constantly expanded during the past four years. In 2017, total trade

between the two countries stood at US$74 billion, increasing by 13% from 2016. With respect to

investment, China's FDI was granted the fourth highest investment incentives in Thailand last year.

4.431. As a country coordinator for the relations between China and ASEAN, Thailand subscribes to the information presented earlier by Lao PDR. We are also pleased to highlight that the successful upgrade of ASEAN-China FTA signed in 2015 has further liberalized our trade in goods, services and investment as well as strengthen economic cooperation between ASEAN and China.

In 2017, China continued to be ASEAN's largest trading partner, with total bilateral trade at US$437 billion, and FDI flows from China to ASEAN amounted to US$11 billion, positioning China as ASEAN's fourth largest source of FDI. In this regard, Thailand appreciates China's constructive role, which brings about mutual benefits to both sides.

4.432. Thailand commends the Chinese Government's initiative to adjust to the "new normal" in economic development, while making progress and maintaining stability. We note from the Secretariat report that despite challenges associated with the new normal, real GDP growth is

expected to be around 6.8% in 2017.


- 54 -

4.433. Thailand welcomes reforms carried out under China's "13th Five-Year Plan", such as the promotion of private sector participation in the economy, the reform of state-owned enterprises, the promotion of competition, and the financial sector reform. We also welcome the "Belt and Road" initiative, which will notably promote greater economic integration as well as transportation and infrastructural cooperation between countries in the region, including Southeast Asia. We believe that these reforms and initiatives will bring tremendous benefits to all trading partners of

China.

4.434. Thailand very much values the proactive role of China in the WTO. China not only was among the first few Members to complete national ratification of the TFA, but also actively promoted more members to ratify the agreement when hosting the G20 Hangzhou Summit. China substantially contributed to the conclusion of ITA Expansion negotiations and responded positively to the WTO Aid for Trade initiative. In addition, China continues to grant unilateral trade

preferences to LDCs.

4.435. Since the last review in 2016, China has submitted to the WTO a number of notifications; nonetheless, some notifications including those on state-trading enterprises, domestic support, and subsidies provided by the central government remain pending. Given China's major role in the global trade, it is important that China adheres to its WTO obligations. In this regard, we urge China to submit its outstanding notifications to the WTO to enhance transparency and predictability. Moreover, we encourage China to ensure that its tariff reduction commitments under

the ITA Expansion are fully fulfilled.

4.436. In this review, Thailand submitted a set of questions, covering the policies and measures of our interests such as duties on multi-component semiconductors, capacity reduction in some manufacturing sectors, SPS measures, VAT exemption for agricultural goods produced and sold directly by farmers and subsidies notification. Thailand thanks China in advance for written responses.

4.437. Let me conclude by expressing our appreciation to the Chinese delegation for the

cooperation in every level, and we wish China a very successful Trade Policy Review.

GUATEMALA

4.438. We note that during the review period, China's economy has been one of the world's economic growth models. Its 6.8% GDP growth over the past years, due to the persistent efforts of its government to maintain constant economic stability, must be seen as a positive development. The chief aim of its Five-Year Plan (2016-2020) is to maintain the country's growth,

focusing on sustainability and quality, with the inclusion of public-private partnerships to help promote new production sectors and inject private capital into domestic projects, bringing local government borrowing under control. During the review period, the Government of China introduced new fiscal reforms and strategies to stimulate competition and the search for new markets.

4.439. It should be noted that the success of China's exports is due to the fact that they consist, for the most part, of manufactured products heading mainly for destinations such as the

United States, the European Union and Hong Kong. In terms of foreign investment, China is one of the main recipients at the world level, but this investment is reciprocal in that China invests considerably in other countries, particularly in areas relating to manufacturing, real estate and banking services.

4.440. One of the points worth highlighting in this review is the efforts made by the Government of China to reform and harmonize its customs procedures, establishing single windows to speed up and streamline the formalities. As a party to the Trade Facilitation Agreement since 2015, China

has been doing its utmost to ensure that by 2020 it will have fully complied with all of its Category B commitments.

4.441. To promote its exports to new markets, the Government of China organizes exhibitions and

training activities so that its national companies can expand their commercial activities. One of the main initiatives in this respect was the "China Manufacturing 2025" plan, whose main objective is to promote manufacturing activities on an equal basis for all enterprises established in China. One


- 55 -

of the strategies pursued by this plan is to promote the development of new experimental manufacturing sectors such as alternative energies, robotics, etc.

4.442. Another development worth noting during this review period is the promotion of competition through the amended version of the Anti-Unfair Competition Law which entered into force in January of this year.

4.443. In 2013, with the announcement of the Silk Road Economic Belt and 21st Century Maritime

Silk Road, China opened up the prospect of trade connectivity with more than 65 countries through the construction of a network of ports, roads, railways, airports, power plants, information technology and telecommunications, promoting new platforms for trade and international cooperation.

4.444. In the intellectual property area, in 2016, the State Council approved the implementation

of the National Intellectual Property Strategy, and during the review period the Chinese

Government introduced legal reforms to its patent law, establishing mechanisms to ensure patent quality by optimizing the examination of patent applications. To help with enforcement, judicial, civil and penal IPR protection measures were strengthened. Amendments were also made to trademark law, including measures to facilitate registration procedures for product and services trademark applications. Over the past few years, more importance has been given to the Madrid System as a means of promoting trademarks at the international level. With respect to copyright, we note the ratification of the Marrakesh Treaty for the visually impaired, and the adoption of

measures to protect copyright in the digital environment. It is important to acknowledge the work of the collective management organizations, and it would interest my delegation to learn what best practice strategies have enabled them over the past few years to work so efficiently on behalf of the persons they represent.

4.445. In conclusion, we would like to thank China for its replies to our questions, which we shall transmit to our capital for consideration and comments. At the same time, we wish the delegation

representing China here today a successful conclusion to this exercise.

MALAYSIA

4.446. Malaysia associates herself to the ASEAN Statement delivered by Lao PDR.

4.447. As the world's second largest economy by nominal GDP and the world's largest economy by purchasing power parity, China continues to exert great influence on the world's economy. We note that from the Secretariat Report that since the last review in 2016, China had continued to be a major driver of global economic growth, while at the same time experiencing a moderate real

GDP growth as the economy adjusts to the "new normal".

4.448. We commend China for its steadfast commitments towards the multilateral trading system, as outlined in the recent China's White Paper on the WTO. We encourage China to continue to play

its role as a responsible stakeholder in the multilateral trading system by resisting protectionism and to undertake necessary reforms to widen access to Chinese markets.

4.449. At the multilateral front we also congratulate China for its swift adoption of many progressive trade and investment policies under the WTO such as the Protocol Amending the

Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs Agreement), the Information Technology Agreement (ITA) and the Trade Facilitation Agreement (TFA). We are also delighted to see China's effort in shaping the WTO discourse by actively participating in the various new and emerging issues such as the investment facilitation and e-commerce.

4.450. In 2017, China continued to be Malaysia's largest trading partner for 9 consecutive years since 2009. Malaysia's total trade with China increased by 20.6% from US$241.0 billion in 2016 to US$290.7 billion in 2017, with exports to China grew by 28.0% to reach US$126.2 billion. Trade

continued to grow strongly in the first quarter of 2018, with total trade increased by 15.6% to USD$24.4 billion, and exports to China grew by 18.4% to US$14.2 billion.

4.451. In investments, China was Malaysia's largest investors in terms of approved investments for two consecutive years (2016-2017).


- 56 -

4.452. In recent years, bilateral trade and investment between Malaysia and China grew enormously under the auspices of the Belt and Road Initiative (BRI) launched in 2013. Malaysia continues to welcome collaboration with China, particularly in high value investments, which we hope will move our Malaysian companies up the global and regional value chains.

4.453. Malaysia-China relationship also grew significantly in the recent years through China's trade with ASEAN. China is ASEAN's largest trading partner since 2009, and ASEAN as the 3rd

largest trading partner of China since 2011. ASEAN benefited remarkably from the many assistance provided by China with the aim of narrowing the development gap, enhancing development capacity and promoting ASEAN community building, in line with the implementation of the ASEAN-China Free Trade Agreement (ACFTA) since 2010.

4.454. Relationship is also strengthening through Regional Comprehensive Economic Partnership (RCEP) which is being negotiated. Both countries view the fora as important platforms in building a

regional value chain through economic and technical cooperation.

4.455. While we note trade, initiatives undertaken by China during the period of review, we do seek some clarity on some of the measures and polices at hand including those of investment related policies as well as the cross-border ecommerce policy framework that is being formulated. Additionally, we are also interested on further deliberation on the reforms in the agricultural sector, particularly on the reduction of domestic support for this sector, as well as the agricultural strategy in China.

4.456. China is a key Member, both in the regular work of the WTO and in the DDA negotiations. We therefore look forward to a stronger leadership by China and other major Members in moving forward the Nairobi mandates and bring conclusion to the remaining DDA issues. In this role, we appreciate the role played by Ambassador Zhang Xiangchen and his team here in Geneva.

4.457. We take this opportunity to thank the Chinese delegation for responding to our questions

and these are being examined at the Capital. In addition, we will also be submitting additional questions and we look forward to receiving the feedback.

4.458. We wish China a productive and successful Seventh Trade Policy Review.

THE PHILIPPINES

4.459. At the outset, the Philippines associates itself with the ASEAN statement delivered by Lao PDR, and highlights China's importance to ASEAN as its largest trading partner and 4th largest source of foreign direct investments.

4.460. China is still the world's economic juggernaut, accounting for roughly 30% of global

economic expansion in 2016 to early 2018. Like many other rapidly growing countries in today's global economic climate, China continues its calibrated adjustment to the "new normal," as its real

GDP growth rate moderated to a respectable 6.8% in 2017.

4.461. The Philippines notes China's 13th Five-Year Plan for 2016-2020, which focuses on quality and sustainability of economic growth, while seeking to further open the domestic market and address barriers to trade. We recognize China's efforts to continue the process of structural economic reform, which includes the promotion of private sector participation in the economy, as

well as the reform of state-owned-enterprises, while keeping the majority of public ownership.

4.462. China figures prominently in the economic and trade landscape of the Philippines. China is the Philippines' top trading partner, with total trade amounting to US$23.82 billion in 2017. It is our 4th largest export market and our top source of imports.

4.463. Our trade relations are rich and dynamic. Philippines' exports to China grew by 9.73% from US$6.37 billion in 2016 to US$6.99 billion in 2017, while imports from China also expanded by 8.14% from US$15.56 billion in 2016 to US$16.83 billion in 2017.


- 57 -

4.464. Our major exports to China include storage units, digital monolithic integrated circuits, nickel ores, and semiconductor devices, while our major imports include petroleum oils, electronic and machine parts, material inputs, and accessories, and hot-rolled bars and rods.

4.465. The Philippines continues to value its partnership with China, and is keen to pursue deeper bilateral engagements, particularly in the areas of trade, investments, and economic cooperation. We intend to sustain the positive momentum of our bilateral trade relations and look forward to

the convening of the 29th Meeting of the Philippines-China Joint Commission on Economic and Trade Cooperation or JCETC this year.

4.466. Through the JCETC, the Philippines hopes to maintain close coordination with China for the implementation of the strategies under the Philippines–China Six-Year Development Program (SYDP) for Trade and Economic Development for 2017-2022. The Philippines is keen to make progress in the following areas covered under the program: Agriculture and Fisheries,

Infrastructure and Public Works, Energy, ICT, Industrial Parks Development, MSMEs, Standards, Technical Regulations and Accreditation, Customs and Trade Facilitation, Processing and Manufacturing, Tourism, Engineering Services, Forestry, Financial Cooperation, and Trade and Investment Promotion.

4.467. On agricultural trade, we reiterate our strong interest towards the expeditious accreditation of our priority agriculture products, recognizing that this will substantially improve the level and scope of agriculture trade between the Philippines and China. We welcome several

capacity-building initiatives in the field of agriculture and fisheries, with the goal of promoting inclusive agricultural trade.

4.468. The Philippines appreciates China's recognition of the important role of MSMEs in achieving inclusive growth and sustainable development. China's Belt and Road Initiative can create greater trade opportunities for MSMEs of developing countries and LDCs, and could potentially translate into broad-based growth. In this regard, we would appreciate more information on China's Plan on

Promoting the Development of Small and Medium-sized Enterprises for 2016-2020 issued by the

Ministry of Industry and Information Technology. We are also interested to learn more about China's incentives and support programmes to attract in-vestment in selected industries, accelerate the upgrading of traditional industries, and foster infant industries. The Philippines has also submitted a few other written questions based on China's government and secretariat reports, and we kindly thank China in advance for their written responses.

4.469. It certainly goes without saying that China is a key player in the WTO and a bona fide

global trading powerhouse. Since acceding to the WTO in 2001, China has made a game-changing impact on global trade and on the rules-based multilateral trading system in ways that cannot be adequately captured in a seven-minute statement. What China does with the economic and political weight it now carries in the multilateral trading system, whether as a responsible international actor, or as global hegemon, is something that all WTO Members, large and small, have a profound interest in. We look towards China's vision for the system, and based on its White Paper issued on 28 June, it seems that China has checked all the right boxes. We thus look

forward to China's implementation of this vision through its future policies and actions in the WTO.

4.470. In closing, the Philippines looks forward to further enhancing the mutually beneficial economic relations between our two countries through bilateral, regional, and multilateral fora.

PERU

4.471. This review is unquestionably taking place at a very particular moment in the history of international trade. We share the concerns felt by many countries regarding the risks threatening world trade and the multilateral system. This is why the Peruvian delegation recognizes the

importance of China's statements during this review. It is a source of satisfaction that our main trading partner, with which we have maintained friendly relations for more than 100 years now, is using this review to renew its commitment to opening up the world economy, to more balanced trade, and to increased cooperation and dialogue, so that we can all share the benefits of trade

and investment as promotors of growth and development.


- 58 -

4.472. Let me now turn to our trade relations with the Member under review. To begin with, China is Peru's main trading partner. In fact, approximately 25% of Peruvian exports are destined for Chinese ports. These consist mainly of minerals, and fishery and agricultural products, some of which are non-traditional exports such as avocadoes, grapes and cranberries. China, for its part, exports approximately US$9 billion worth of goods to Peru, chiefly manufactures. Bilateral trade has grown steadily over the past decade, exceeding US$20 billion in 2017. This promising

dynamism is accompanied by close political and cultural ties resulting from our long-standing bilateral relations dating back to the 19th century, the cooperation between the two governments, and our shared economic interests. The importance of our economic relations is reflected in the Free Trade Agreement between the two countries that has been in force since March 2010 and has set the stage for the development and growth of bilateral trade. For Peru, this FTA establishes clear rules of the game, within a transparent and predictable framework which makes it possible to

maintain and promote orderly bilateral trade while safeguarding the national interests of both countries. It also sends a positive signal to investors that will help to heighten their interest in new

initiatives in our markets. I would like to note, in this connection, that China's investments in Peru are considerable, and cover a range of different sectors of our economy, such as mining, financial services and construction.

4.473. Peru has noted with great interest many of the points contained in the reports that are part of this review. We take a positive view of China's approach to economic growth based on quality

and sustainability, and of China's achievements in reducing the poverty and inequality. Likewise, Peru has noted the progress made in deepening the reform of the monetary, financial and foreign exchange system in China, and in particular, the easing of policies governing the yuan exchange rate, insofar as this is an important factor for international trade. We would also like to highlight the efforts made by the Chinese Government to streamline its customs procedures, and we have submitted a question to the Chinese delegation regarding possible mechanisms for the exchange of information between customs.

4.474. We must note, however, in a spirit of constructiveness and transparency, that the support

programmes offered by the Chinese Government to certain industries continue to be a source of concern in that they probably affect the production cost, and hence the export price, of merchandise from China. We have submitted a question regarding the assessment of the impact of these programmes.

4.475. Turning to the multilateral system, we appreciate that this review has served as a

framework for China to renew its commitment to the stability and soundness of the system, which can only be maintained and strengthened if all Members undertake to comply with the obligations they have assumed. We also welcome China's active role and its efforts to be open to dialogue and to participation in the negotiation of various issues on the WTO's agenda.

4.476. Having raised these important points, it remains for me to thank (in advance) the delegation of China for its replies, which will be carefully examined in Geneva and in our capital, and to wish China a successful trade policy review.

KINGDOM OF SAUDI ARABIA

4.477. The Trade Policy Review reports prepared by China and the Secretariat reveal that the Chinese economy remains strong, stable and diversified. GDP growth has averaged around 7% annually during the review period. With a population of 1.3 billion, China became the second largest economy and is increasingly playing an important and influential role in the global economy.

4.478. By setting out wise structural economic reforms based on the guiding principles spelled out

by the 13th Five-Year Plan (2016-2020), China's economy has shifted to highly productive and competitive one based on greater innovative capacity, technology and skilled labor. These reforms were undertaken in different sectors such as, increasing the private sector participation in the economy, State-Owned Enterprises, competition, fiscal, financial sector, Foreign Investment System, small and medium-sized enterprises, customs procedures, and protection of intellectual

property rights.


- 59 -

4.479. The Kingdom of Saudi Arabia welcomes China's great efforts towards opening-up to the outside world through the removal of restrictions to facilitate foreign direct investment and initiatives such as the China (Shanghai) Pilot Free Trade Zone and its expansion to 11 pilot free trade zones during the review period. According to the 2017 UNCTAD World Investment Report, China became the second-largest recipients of FDI inflows (136 billion USD) in the world in 2017 up from the 6th in 2007.

4.480. We also appreciate China's firm commitment to the rules-based multilateral trading system, as well as to help developing countries and Least Developed Countries (LDCs) addressing their concerns and difficulties.

4.481. China and Saudi Arabia enjoy a friendly and substantive relationship, underpinned by commercial ties and supported by shared membership in the G20. China is one of Saudi Arabia's top trading partners, with trade exchange standing at US$46 billion. Saudi Arabia primarily exports

crude petroleum, Gas and petrochemicals to China. China exports to Saudi Arabia electronics, machinery appliances and parts, textiles, furniture and premade buildings and iron and steel.

4.482. Saudi Arabia and China share a keen interest to boost cooperation in the area of energy, water desalination, transportation, telecommunications, Investments, education and technologies.

4.483. The Kingdom of Saudi Arabia believes that the multilateral trading system is a key element for global development. China has proved its commitment to support the multilateral trading system and has a long-standing tradition of constructive participation in the WTO, and an active

role in the promotion of free and open trade.

4.484. I wish the Chinese delegation a very successful Trade Policy Review.

CENTRAL AFRICAIN REPUBLIC ON BEHALF OF THE LDC GROUP

4.485. The LDC Group at the WTO would like to thank and congratulate the Ambassador and Permanent Representative of China to the WTO, H.E. Mr Zhang Xiangchen, and his whole team, for their extremely important role in our discussions at the WTO and their contribution to strengthening the multilateral trading system – a system which is constantly being attacked for its

systemic decline. We highly appreciate China's support for the LDCs.

4.486. Since its accession to the WTO, China has aptly demonstrated that the multilateral trading system is the cornerstone of international trade and one of the important pillars of development. The LDC Group shares China's vision of an open, transparent, inclusive and non-discriminatory multilateral trading system, which is a guarantee of participation and integration of the LDCs in international trade.

4.487. We welcome the fact that China has embraced free trade, is opening its market, and is cooperating on a win-win basis while assuming its responsibility as a large country by opening up

to the outside world. The LDC Group also welcomes China's efforts and actions on its behalf in different areas.

4.488. The LDC Group also appreciates China's approach as regards compliance with multilateral trade rules and its commitment to meeting notification requirements and its WTO obligations.

4.489. The level of LDC exports to China remains high and has been made possible by the

preferential system for LDCs. The LDCs benefit from duty-free and quota-free access to the Chinese market for both agricultural and non-agricultural products.

4.490. The prospects for economic and commercial relations between the LDCs and China are very encouraging, particularly when it comes to agriculture, fisheries, the exploitation of mineral resources, infrastructure, education, health and the tourism sector. The LDCs possess largely unexploited potential, and need significant support to implement their diversification and economic structural transformation policies with a view to strengthening their production capacity and

creating a real momentum for international trade.


- 60 -

4.491. The LDCs are engaged in a dynamic process to strengthen their respective economies and their integration into the global trading system, and have been implementing numerous action plans and initiatives in various sectors of activity they regard as key to building production capacity, promoting the competitiveness of the economy and reducing poverty.

4.492. The LDCs rely on China's reaffirmed support to operationalize and strengthen their policies in the fields of agriculture, fisheries, livestock breeding, infrastructure, transport, technology

transfer, tourism, and human and institutional capacity building. They see China as an important partner, a major player and a driver of world growth with which they would like to further develop their trade.

4.493. We encourage China to continue to act with determination to promote world economic governance based on equality, impartiality, cooperation, and a win-win mindset, and to support the LDCs, particularly in the structural transformation of their economies.

4.494. On behalf of the LDC Group, the Central African Republic wishes the People's Republic of China every success with its reforms and initiatives, and with its Seventh Trade Policy Review.

BURUNDI

4.495. What we have seen and heard thus far shows that China is fully committed to promoting its economy in order to affirm its integration in the multilateral trading system.

4.496. Burundi therefore welcomes China's celebration of the 40th anniversary of the adoption of its policy of reform and opening up to the world, as well as its considerable efforts to enter a new

historical phase in its development that will benefit us all.

4.497. Consumption in China accounted for close to two thirds of economic expansion. The reasons for this consumption-driven growth include strong employment creation, rising incomes

and improving coverage of the social safety net.

4.498. We also appreciate the considerable efforts made by China to solve the problems relating to the slowdown that the country has experienced over the past three years, focusing on the quality and sustainability of growth rather than its quantity with a view to encouraging

innovation-driven, harmonized, green, open, and inclusive development as a means of reducing poverty.

4.499. My delegation commends China for its policy of achieving its development objectives without leaving anyone behind. This is reflected in its implementation of targeted poverty reduction and alleviation measures so as to ensure that, by the year 2020, all rural residents living below the current poverty line will have been lifted out of poverty.

4.500. My delegation also welcomes China's strategy of reforming pricing mechanisms for major

farm products to strengthen the role of market mechanisms and to reform, on a pilot basis, the land management system. The result has been to loosen control on the land-operating rights while maintaining the principle of collective ownership of the land. This measure deserves to be commended, because agriculture is the main source of livelihood for the developing countries and LDCs.

4.501. Moreover, the Chinese Government deserves credit for its determination to keep speeding

up the modernization of agriculture and rural areas and fostering new growth drivers of rural development in order to keep fighting poverty and improving the living conditions of the population.

4.502. As China has pointed out, active participation in the negotiations on the outstanding Doha Round issues will ensure fair and effective integration of all WTO Members in the multilateral trading system without forgetting development, which must be the key task of the WTO's work.

4.503. In the same spirit, Burundi maintains that all WTO Members should join hands to meet the

challenges faced by the world economy, create new opportunities for development, seek new development momentum, expand new development space, achieve mutual complementarity and


- 61 -

mutual benefit, and continuously move in the direction of a community with a shared future for mankind.

4.504. My delegation remains convinced that this will only be possible if all Members of the WTO remain committed to the basic principles of the WTO, a fundamental stabilizer in global economic governance.

4.505. My delegation encourages China to implement the measures suggested by the

WTO Secretariat, inter alia to reduce the subsidization of enterprises and to further de-leverage the private sector.

4.506. Finally, my delegation would like to present its compliments to the Chinese Government and express its appreciation for the ties of friendship and cooperation that already exist between our two countries.

4.507. The Government of Burundi takes this opportunity to thank China for all of the projects

that it launched for Burundi in different areas, and to wish China every success for its 7th Trade Policy Review.

OMAN

4.508. Oman has long historical and friendly relations with China. Our bilateral trade has grown significantly over the past years making China one of the biggest trading partners of Oman. Our main exports to China include petrochemicals and other energy related products. We plan to diversify our exports base in the near future. Oman and China have recently established a

strategic partnership, which we expect to further expand and strengthen our already strong economic and trade relations in the coming years.

4.509. We would like to congratulate China on the impressive performance of its economy.

Despite numerous challenges, GDP growth stood at just under 7% during the period under review. This is a high growth rate by any standard and is in fact among the highest in the world. China has a current account surplus of US$202.2 billion, which is equivalent to approximately 1.3% of total GDP. Remarkably, in 2015 China's services sector has for the first time exceeded 50% of its total

GDP.

4.510. China's exports continue to be dominated by manufactures which account for 93.7% of total merchandise exports. During the period under review, merchandise exports stood at around US$2,000 billion and in terms of its performance in services exports stood at approximately US$200 billion. China is thus a major player in world trade.

4.511. China, which is an Article 12 Member, has bound 100% of its tariff lines. Its simple

average applied MFN rate is 9.3%, which notably represents a small decrease from previous years. We are pleased to note that China has taken steps early this year to streamline and review its

domestic standards framework.

4.512. Oman welcomes and supports the Chinese-proposed plans to revive the Silk Road through the "One Belt One Road Initiative". The famous port city of Sohar in Oman was once known in the region as the "Gateway to China". We hope to be able to revive its historic role through this very important global initiative. Oman is willing to actively participate in projects under this framework

and will continue to support and participate in the Belt and Road Forum for International Cooperation.

4.513. China is a very active Member of the WTO. It is a strong supporter of the multilateral trading system and an active participant in negotiations. We hope China will continue its active engagement as an Article 12 Member in fulfilling the WTO's objective of liberalization and expansion of world trade.

4.514. Finally, we wish China a very successful 7th trade policy review.


- 62 -

NEPAL

4.515. It is noteworthy that the economic fundamentals of China are on track. The Chinese economy, the major driver of global economic growth, is expanding at over 6% in real GDP with strong services sector especially the e-commerce sales and tourism services. Accordingly, the future growth could also be boosted by the Belt and Road Initiative which aims to foster multinational cooperation in trade, investment and finance for the infrastructure development and

connectivity at the regional and global level.

4.516. It is appreciable that due to visionary and dynamic leadership, hardworking people, good governance, among others, China continues to rise, and level of poverty and inequality continue to decline.

4.517. Applying new vision, establishing new mechanisms, including trade facilitation, innovative

business modes, conducive investment environment, further opening-up manufacturing and

financial sector are dynamic initiatives of Government of China.

4.518. As a faithful supporter of the rule based multilateral trading system, China could play a vital role in strengthening the WTO and help bring the DDA to a logical conclusion for the benefit of poor and marginalized countries of this august House.

4.519. We appreciate China's effort in granting preferential rules of origin and preferential tariff treatment to the products entering to the Chinese markets from the LDCs. Similarly, China's trade-related South-South cooperation in the context of the Aid for Trade initiative is appreciable.

4.520. Being neighbors, Nepal and China enjoy long political, economic, religious, social and cultural relations. The economic relations between two countries have been strengthened further since the establishment of diplomatic relations in 1955, which is based on the Five Principles of Peaceful Coexistence. Nepal-China relations have always remained cordial and cooperative. These

relations have been marked by friendliness and based on mutual support, understanding and appreciation of each other's sensitivities.

4.521. We appreciate China's continued support to Nepal in its economic development. The

bilateral mechanisms at different levels in the areas of trade, transit, tourism, hydro, connectivity and infrastructure, human resources development, industry and investment, among others, need to be strengthened further to realize the expected benefits in a sustained way.

4.522. Since China is the second largest trading partner of Nepal after India, we appreciate China's effort in extending the duty-free market access for over 8,000 (8030) Nepali goods exporting to China. Despite significant rise in exports of Nepal to China, trade deficit of Nepal with

China continues to widen. Therefore, we encourage China to simplify the duty-free market access facility extended to LDCs including Nepal and modify HS Code to six digits from eight digits.

4.523. Similarly, we request China to lower the non-tariff measures so that Nepal could reap the benefits from trade opportunities.

4.524. Finally, my delegation believes that China could play a crucial role in strengthening and safeguarding the multilateral trading system in the interest of all member countries.

4.525. We value the relationship between the two countries and expect strengthened partnership

for our socio-economic development. We wish China a great success for the 7th Trade Policy Review.

MYANMAR

4.526. Myanmar and China are friendly neighbours, sharing a long border. Our two countries have established diplomatic relations since 1950, and the bilateral trade agreement has been signed since 1971.


- 63 -

4.527. According to our trade data, China has stood as Myanmar's largest trading partner for over a decade. The bilateral trade has increased, year on year. In the 2017-2018 Fiscal Year, the trade turnover reached over US$11.76 billion. We expect to see the continuation of this positive trend.

4.528. In terms of the Foreign Direct Investment in Myanmar, China takes the first place, with over US$19.96 billion investment from 237 Chinese companies.

4.529. Based on the Secretariat's report, I would like to draw your attention to progressive trade

regime of the People's Republic of China. With continuous reforms and opening-up its policy, China has reached a new historic juncture in its development. The Chinese economy continued to be a major driver of global economy. We learned that the Government of China focused on the quality and sustainability rather than the quantity of growth.

4.530. The merchandise trade volume of China was US$3,685.5 billion in 2016 and there was

trade surplus about US$509.7 billion in 2016. This trade performance is remarkable with similar

structure of trade in goods. We noted that China has already signed 17 regional trade agreements. As of December 2017, China granted 97% of tariff lines as a duty-free treatment for LDCs.

4.531. In terms of investment flow, China continues to be one of the world's largest recipients of FDI. FDI inflows have been growing for a number of years and outward FDI has also been trending upwards for a number of years.

4.532. We recognize China's strong commitments to build an open world economy by promoting coordination and cooperation among countries, deepening the friendship and common

development, as well as by enhancing further unity and cooperation with the developing world.

4.533. In the face of difficulties in world economic development, China put forward the Belt and Road Initiative. The Belt and Road Initiative plays an important role in promoting in-depth cooperation and common development between countries and regions, upholding and growing an

open world economy, making economic globalization open, inclusive, balanced, win-win and beneficial to all and advancing the building of community with a shared future for all.

4.534. China is an important partner and active supporter of both regional and multilateral trading

system. At this critical juncture of the WTO's system under many challenges, we are happy to see continuous and effective support of China to the WTO especially in strengthening its rules-based multilateral trading system, enforcing global trade rules, and bringing the current WTO's trade negotiation forward.

4.535. Finally, the Delegation of Myanmar is pleased to convey appreciation to His Excellency Mr. Wang Shouwen, and his delegation for their friendship and constructive engagement

throughout this TPR process.

4.536. We would like to wish the Chinese Delegation every success in their seventh Trade Policy

Review.

BENIN

4.537. A major economy, China has accounted for an annual average of 30% of world economic growth since the period following the international financial crisis.

4.538. China has pursued its reforms under the 13th Five-Year Plan 2016-2020, which aims to

revise the country's current economic structure, inter alia through private sector participation and the promotion of competition, giving an impetus to the country's economic growth, which has settled at around 7% of GDP annually.

4.539. These reforms concern, in particular, the investment regime, the fiscal regime, and the financial system.

4.540. With respect to trade, the delegation of Benin notes that since 2014 China has continued to make substantial progress in two-way investments and foreign trade. Thus, Chinese imports and

exports of goods have ranked first in the world for the third consecutive year since 2013, and


- 64 -

overall trade represented 53.4% of total exports and 54.9% of total imports. China has also diversified its trading partners as well as the volume of trade with its partners, and private enterprises have continued to record above-average results, particularly in the services sector.

4.541. The delegation of Benin wishes to highlight China's commitment to the multilateral trading system, and in particular its involvement in the work and its commitment to the conclusion of the Doha Round negotiations.

4.542. Benin welcomes China's initiatives to advance the negotiations at the WTO, and the beneficial involvement of Ambassador Zhang Xiangchen and his team.

4.543. Turning to bilateral cooperation, our delegation would like to express its appreciation for the excellent cooperation prevailing between our two countries, a cooperation that is gathering pace in the fight against poverty and the promotion of economic and social development in Benin.

4.544. The delegation of Benin highly values the support provided by China not only to Benin, but

to all of the C-4 countries, the cotton-producing African countries and LDCs, for the promotion of this strategic economic and social sector.

4.545. We wish China success and a fruitful trade policy review.

VIET NAM

4.546. We would like to associate ourselves with the ASEAN joint statement delivered by Lao PDR.

4.547. At the outset, Viet Nam would like to commend that China's economy has again experienced continued strong growth during the period under review, with GDP growth rates

remain at around 7% a year, supported by strong domestic consumption, making it one of the

fastest growing economies in the world today.

4.548. As the Secretariat noted, China continues to be one of the main drivers of the world economy and a major player in global trade. Therefore, we particularly welcome the Chinese Government's commitment and steps taken so far to comprehensively deepen reform, promote innovation, expand private-sector participation in the economy, further advance the reform of state-owned enterprises and develop the services sector. Given these strong commitments, we

trust and expect that China's economy will continue to be the driving force of, and make contributions to, the growth of global economy.

4.549. Turning to the bilateral side, China and Viet Nam enjoy long-standing bilateral economic ties, underpinned by strong trade and investment linkages. China is currently Viet Nam's largest trading partner, while Viet Nam stands as China's eighth largest trading partner. In 2017, the two-way trade reached US$93.7 billion, up 30.2% compared to 2016. Of the total, Viet Nam's

export to China recorded US$35.5 billion, a year-on-year increase of 61.5%. Import from China

rose by 16.4% year-on-year to US$58.2 billion. In the first four months of this year, trade between the two countries totaled US$29.65 billion, an increase of 16.9% from the same period last year. China is our second biggest export destination and biggest import source.

4.550. In terms of investment, up to June 2018, China has 1955 investment projects in Viet Nam with the registered capital of US$12.490 billion, ranking seventh out of 128 countries and territories investing in Viet Nam.

4.551. These figures speak for themselves: we should continue to step up our efforts in enhancing the bilateral trade and cooperation to ever attain new heights, while at the same time we should have more effective and practical activities and measures to address the recent trade issues such as labelling and packaging requirements for food, and registration procedures and risk assessment requirements for imported fruits etc., to ensure sustainability and balance of benefits for businesses and people of the two countries.

4.552. Viet Nam appreciates the positive role of China in support of the multilateral trading

system. We have high expectations and attach great importance to areas where China can help


- 65 -

consensus building in the WTO, such as trade facilitation, agriculture reforms and support to small and medium enterprises.

4.553. In conclusion, I would like to take this opportunity to thank Ambassador Zhang Xiangchen and his dedicated team for the preparation of this review and wishes China every success in its economic and social development and the Chinese delegation a fruitful trade policy review.

MAURITIUS

4.554. I wish to underline that Mauritius has longstanding and close bilateral relations with China and China is one of our strategic partners for the economic development of Mauritius.

4.555. Mauritius recognizes the strong commitment of China to multilateral trading system and its active participation in the WTO.

4.556. Mauritius commends the Chinese Government for the implementation of reforms aimed at improving the business climate and attracting investment, namely under the 13th Five-Year Plan

2016-2020. We encourage China to pursue the reforms with a view to further improving its ranking in the Global Ease of Doing Business, which has significantly improved in the last three years. The ambitious Belt and Road Initiative could potentially generate tremendous gains in terms of improving trade connectivity for China and its trade partners.

4.557. With respect to its multilateral obligations, Mauritius welcomes the significant efforts of the Chinese Government to reform and implement the Trade Facilitation Agreement. We appreciate that one third of imports are now declared through the Single Windows and clearance times for

exports are being continuously reduced. We further note that China has reduced its simple average applied MFN rate to 9.3% as at December 2017 and has implemented reduced applied MFN tariffs for some 200 products, an important step towards further liberalizing trade.

4.558. We however note that while China maintains a strong record of notifications to the WTO, some still remain outstanding. We therefore encourage China to take necessary steps to conform to the WTO requirements in a timely manner for the sake of transparency.

4.559. On the bilateral front, Mauritius is currently negotiating a Free Trade Agreement with

China, covering trade in goods and services, intellectual property, trade remedies, economic cooperation and dispute settlement, amongst others. We look forward to concluding the negotiations by the end of the year.

4.560. The signature of China-Mauritius FTA would be mutually beneficial to our nations in terms of further expanding bilateral trade and investment exchanges, and in a larger context, by injecting fresh momentum to the relationship between China and Africa as well as promoting the

Belt and Road Initiative in Africa.

4.561. Finally, I would like to wish a successful trade policy review to the Chinese delegation.

PANAMA

4.562. In its report, China notes that its economic development has entered a new phase in which it is seeking to achieve development that is "more open, inclusive and balanced", and in which the benefits are shared by all. Panama would like to take this opportunity to highlight China's commitment to the multilateral system, and some of the important steps it has taken since its last

review towards achieving those aims, ensuring that its economy continues to be an important driver of global economic growth.

4.563. We note that according to the Secretariat report, China has sought to move forward on quality and sustainability issues. Moreover, under the 13th Five-Year Plan (2016-2020) it aims to continue the process of structural economic reform that includes the promotion of private sector participation in the economy as well as the reform of state-owned enterprises, although

maintaining the preponderance of public ownership.


- 66 -

4.564. There is a every reason to believe that China has made efforts to reform and harmonize its customs procedures, and a third of its imports are currently declared through single windows. Moreover, China accepted the Agreement on Trade Facilitation in September 2015, and we expect further progress in that direction.

4.565. Also worth noting is China's most recent agricultural strategy, which aims to deepen the supply-side structural reform in agriculture by improving structures, promoting "green" production,

extending the sector's industrial and value chain, boosting innovation and consolidating shared rural development.

4.566. In the WTO, China and Panama belong to the Group of Article XII Members, which is seeking to balance the commitments of recently acceded countries with those of original GATT Members. This group is currently active in the negotiations on agriculture, market access and services.

4.567. Moreover, in agriculture both countries belong to the G-33, a negotiating group which ensures the protection of the vulnerable sectors of agriculture in the developing countries. China is one of the largest contributors to the Work Programme on Electronic Commerce, and recently submitted a proposal, together with India, on domestic support.

4.568. Panama and China recently celebrated the first anniversary of the establishment of diplomatic ties. During that period, the two countries concluded important agreements for the promotion of investment in the economic, logistical, educational and tourism sectors, which have

significant trade dimensions. Since Panama is relying on its strategic logistical position in an increasingly integrated world, we appreciate the importance of Air China's decision to introduce flights between Beijing and Panama City, making Panama the main air hub for China in Latin America.

4.569. A joint Panama-China Committee was set up to strengthen and promote bilateral

cooperation on economic matters, trade, and investment, fostering welfare not only between China and Panama, but also between Asia and America.

4.570. Yesterday, as a result of these joint initiatives, Panama and China launched negotiations for a trade agreement.

4.571. During the period 2012-2016, without an FTA, imports from China increased by 24% from US$809 million in 2012 to US$1,070 million in 2016. On the other hand, Panama's exports to China reached barely US$35.5 million in 2016. Notwithstanding this difference, we acknowledge that China represents a potential market for certain Panamanian exports, just as Panama could be

interesting for certain Chinese investors.

4.572. Finally, it is important to mention that China ranks second among users of the Panama Canal, through which 6% of world's maritime trade transits, and the container vessel "Andronikos"

belonging to China Cosco Shipping Corporation Limited made the first transit through the Expanded Panama Canal.

4.573. We would like to thank China for its commitment and its active participation in the multilateral system, and to wish it a successful trade policy review.

SRI LANKA

4.574. China continued to be a major driver of global economic growth standing as the largest trading nation in the world. It has been able to maintain its economic growth at an average 7% during the review period. We also observe that the local consumption has significantly contributed China's growth. It is interesting to note that Government of China intends focusing on the quality and sustainability rather than the quantity of growth. We believe the latest Five-Year Plan which was launched in 2016 aiming at structural economic reforms, has captioned this sustainability

aspect of the Government.

4.575. China has bound all its tariff. Although the tariff reform implemented by the Chinese authorities in December 2017 has reduced the applied MFN tariffs for some 200 consumer


- 67 -

products which resulted a slight decline in average applied MFN tariff, it is still relatively high, and it may deprive the competing opportunities for the small countries like us.

4.576. My delegation appreciates the significant role played by China in the multilateral trading system since its accession to WTO. It is also interested to note that China has notified category B commitments under TFA without maintaining any commitments under category C. China is also an active member of likeminded group on Friends of E-Commerce for Development in the WTO. We

note with interest the active engagement played by delegation of China in the Open-ended discussions taken place on MSMEs and Investment Facilitation.

4.577. In regard to bilateral relations between Sri Lanka and China, our ancient relations were mainly on religious and cultural relations. Since independence of Sri Lanka in 1948 our trade and economic relations started to grow up significantly. In 1952, opening a new chapter in trade relations between the two countries, China and Sri Lanka entered into a Barter Trade Agreement

on rubber and rice, called 'Sino-Lanka Rubber-Rice Pact'. This has become historic as it was the first trade agreement signed by China with a non-communist country. 5 years after signing this agreement, China established diplomatic relations with Sri Lanka.

4.578. Over the past decade, the total trade turnover between two countries has been increased almost by 4 times. However, the balance of trade is always heavily in favour of China. In terms of total trade, China is our second largest trading partner. Imports from China in 2017 was US$4191 million while Sri Lanka's exports to China remains at US$415 million. The trade gap

remains at US$3,776 million in 2017.

4.579. Around 40% of Sri Lanka's exports to China enjoy preferential market access under Asia-Pacific Agreement (APTA) formerly Bangkok agreement. Although Sri Lanka has the potential to increase its export to China under this regional agreement, a review of sensitive list of China may be required to avail of this opportunity.

4.580. China has been an important source of funding for many infrastructure development projects in Sri Lanka. Building of Port City reclaiming 02 sqkm land, development of second

seaport in South of Sri Lanka and developing second international Airport in the country are the latest of such assistance. China has also invested in tourism industry.

4.581. Sri Lanka and China has initiated negotiations on a comprehensive free trade agreement since 2014 following the State visit of Chinese President to Sri Lanka. Sri Lanka also attracts signification number of tourists from China.

4.582. In the multilateral front, my delegation appreciates China's highly valued contribution to

the multilateral trading system. China as an active member of WTO continues to engage proactively in the ongoing negotiations. The dynamic role played by the Ambassador Zhang and his team in Geneva is highly commendable.

4.583. In concluding, my delegation sincerely wishes Chinese delegation a successful deliberation on its seventh Trade Policy Review.

GHANA

4.584. Ghana's economic and trade cooperation with China has achieved gratifying results with

trade volume surging from less than US$100 million in 2000 to US$5.6 billion in 2014, and US$6.67 billion by the end of 2017, a percentage increase of about 12% over the 2016 volume of trade.

4.585. Although Ghana's exports to China hit US$1.85 billion in 2017 after surging to a record high of US$1.4 billion in 2014, representing over 41% increase, trade between the two countries remain unbalanced in favour of China due to Ghana's large volumes of imports.

4.586. Currently, China is one of the main sources of foreign –direct investment in Ghana which

has financed a number of projects that have boosted the socio-economic growth of Ghana. In 2015, China made direct investments of US$174 million in Ghana, with an over-all accumulated


- 68 -

amount of US$1.3 billion, ranking China as the current leading source of investments in terms of number of projects in Ghana and fourth among African countries.

4.587. China's investment in Ghana last year included US$50 million for the construction of a Fishing Harbour Complex in Accra to enhance productivity and create job opportunities for the fisher folks in the coastal communities. Chinese investments are in the fields of energy, manufacturing, aviation and agriculture including the Sunon Asogli Power Plant, Africa World

Airline and the Sentuo Steel factory, which had played key roles in providing job opportunities for the local people, improving their livelihood, promoting interconnection of the sub-region, and helping to resolve electricity power shortage.

4.588. Other areas that have benefitted from Chinese investments and worthy of mention include E-Governance, Water Supply Expansion, Gas Processing and rural electrification as well as satellite TV covering 300 villages across the country. We are confident that the phase 2 of the University of

Health and Allied Sciences project will also proceed as planned.

China-Africa Cooperation

4.589. Ghana ranks high in China-Africa cooperation achieved through jointly cultivated and nurtured political trust.

4.590. During the China-Africa Cooperation Summit in Johannesburg last year, China mentioned agricultural modernization, infrastructure, green development and poverty reduction as priority areas of China-Africa cooperation. We remain confident that China would uphold the guidelines on

its relations with Africa to further take the China-Africa economic and trade cooperation to a new level.

4.591. According to the International Institute for the Advanced Study of Cultures, Institutions and Economic Enterprise "China emerging as the world's largest economy, and has moved from

being the world's factory to one of the world's largest consumer markets". The new era of China-Africa relations, potentially offers not only mutually beneficial collaborations for both sides but also, a chance for Africa as a whole and Ghana, in particular, to use innovation in converting

its rich sources to create supply for "the world's largest consumer".

Review Reports

4.592. From the reports, we note China's adoption of the policy reform to open its economy which celebrates its 40 years this year and which has reached a new historic juncture in its development, under the guidance of President Xi Jingping.

4.593. The reports indicate that Real GDP grew by 6.7% in 2016 and was expected to maintain

that growth in 2017 engineered mainly by consumption with the share of services in GDP exceeding 50% for the first time in 2015 generated by e-commerce and tourism services.

4.594. Whereas the share of merchandise trade in GDP, income inequality and poverty levels have declined, excess capacity in some energy and manufacturing sectors and implicit assistance to state-owned enterprises (SOEs) have increased over several years.

China and the WTO

4.595. China has been an active member of the WTO and participates fully in all its deliberations.

Of particular mention are its commitments to joining the Government Procurement Agreement, its Observer status to the Pluri-lateral Agreement on Trade in Civil Aircraft and contribution to the expansion of the Information Technology Agreement, as well as in the implementation of the Trade Facilitation Agreement. The latter is exemplified by categorization of all but 4 measures for immediate implementation and the remaining four as measures to be implemented within 3 years.

4.596. We note that, and as indicated by other members, state trading and state-owned

enterprises are prevalent and highly solicited and encourage China to divest itself of this

endeavour and encourage competition. The aging population and excess capacity of some of these companies need to need to be address if stability is to be maintained.


- 69 -

4.597. We are confident that China as a defender of the principles of rules, openness, transparency, inclusiveness and non-discrimination as indicated in the country report, will help address the current protectionist and unilateral policies of certain Members and bring sanity in the MTS.

4.598. As a global leader, we expect China to channel its capacity to benefit other developing countries in the spirit of south-south cooperation.

4.599. Ghana congratulates China on its 7th TPR and wishes it every success in the review.

TAJIKISTAN

4.600. Tajik-Chinese trade and economic relations were established in 1992 after the acquisition of sovereignty by the Republic of Tajikistan.

4.601. It is worth to note that the Republic of Tajikistan builds its relations with China taking into account its dynamically developing economy and its large financial resources, which create

favourable conditions for mutually beneficial cooperation, primarily in the field of trade and investment.

4.602. The issues related to the development of friendly relations and cooperation between the two countries have been considered at the meeting of President of Tajikistan Emomali Rahmon with President of the People's Republic of China Xi Jinping during the State visit of the President of the Republic of Tajikistan to China in August 2017.

4.603. Constructive exchange of views was held on the expansion of political, economic,

investment, trade, scientific, technical, and cultural cooperation.

4.604. Following the official negotiations, a number of documents were signed which have laid the foundation to legal treaty basis of cooperation between Tajikistan and China.

4.605. During state visit to China the Head of State Emomali Rahmon emphasized that Tajikistan is interested in the active participation of the Chinese side in the implementation of projects for the construction of medium-capacity hydroelectric power plants. The sides elaborated constructive ideas and proposals on the strengthening of interstate relations in the direction of reconstruction of

Tajikistan's hydropower capacities, in the transport and transit sector, including the construction of the regional railway China-Kyrgyzstan-Tajikistan-Afghanistan-Iran, which revives the southern branch of the "Great Silk Road". The Tajik side particularly emphasized the great potential of the country in establishing effective cooperation with China in the construction and reconstruction of aluminum production plants, the import of modern machinery and technologies from China and the export of fruits and vegetables to China. In order to improve relations in the areas of mutual

interest, the parties considered it necessary to intensify the work of the Intergovernmental Commission of the Republic of Tajikistan and the People's Republic of China on Trade and

Economic Cooperation. The meeting also discussed issues related to the development and expansion of interaction between Tajikistan and China in the spheres of production of building materials, processing of cotton fiber and mining - metallurgical minerals.

4.606. On the sidelines of the session of the Council of Heads of State of the Shanghai Cooperation Organization in China in 2018, the Founder of Peace and National Unity – Leader of

the Nation, President of the Republic of Tajikistan Emomali Rahmon had a meeting with President of the People's Republic of China Xi Jinping. President of Tajikistan confidently stated that we will continue to make efforts to strengthen and expand the partnership and strategic relations between the two countries and expressed gratitude for the worthy contribution of the Chinese Government in ensuring the sustainable socio-economic development of Tajikistan and implementing important infrastructure projects. It was mentioned that the package of earlier signed documents will make a significant contribution to the implementation of Tajikistan's plans and state programmes,

including the National Development Strategy for the period up to 2030, the achievement of strategic goals and the transformation of the country from agro-industrial to industrial-agrarian

country.


- 70 -

4.607. The foreign trade turnover between Tajikistan and China for 2017 amounted US$591,5 million and decreased by US$293,7 million comparing to 2016. Of the total amount of foreign trade turnover import constitutes US$556,1 million but there is a decrease in comparison with 2016 by US$284,9 million. Export constituted US$35,4 million and decreased by US$8,2 million comparing to 2016. The share of trade with China in 2017 was 14.8%.

4.608. The expansion of trade cooperation with China is in the interests of both States. In this

regard it is important to make use of available opportunities for the development of trade relations between Tajikistan and China.

4.609. This seventh Trade Policy Review of China provides a great opportunity to improve our understanding of its trade and investment regime.

4.610. Allow me to highlight some key aspects of TP reports. The Chinese economy continued to

be a major driver of global economic growth. Real GDP growth has been moderating as the

economy adjusts to the "new normal" with growth rates of around 7% per year in the foreseeable future; growth rebalances from investment to consumption, from external to internal demand, and from manufacturing to services. Consumption was responsible for around two-thirds of the growth during the review period. The share of services in GDP exceeded 50% for the first time in 2015. Within services, e-commerce sales and tourism services imports have been particularly strong. China expanded its RTA network by signing two new agreements with the Maldives and Georgia, bringing the total number to 17. However, the volume of Chinese trade covered by FTAs remains

small.

4.611. China as an active Member of the WTO continued to make efforts to reform and harmonize its customs procedures. About one third of imports are now declared through single windows. Clearance times of imports were reduced to an average of 16.7 hours in 2017 from over 22 hours in 2016. China accepted the Agreement on Trade Facilitation in September 2015. It notified its Category A commitments, which cover the majority of measures, in June 2014, and its Category B

commitments in June 2017. China does not have any Category C commitments. The indicative

implementation date for most Category B commitments is February 2020.

4.612. My delegation acknowledges China's continued pursuit of trade liberalization in a multilateral as well as bilateral context. China's contribution to and constructive involvement in various areas of the work and negotiations of the WTO is also remarkable. We also acknowledge the China's efforts to support the integration of developing economies into the global trading system.

4.613. We are confident that China continues to undertake further trade policy and structural reforms to improve its overall efficiency and to maintain an open WTO-consistent trade and investment regime to secure sustainable growth.

4.614. In conclusion I wish China a very productive and successful trade policy review exercise.

GUINEA

4.615. For the Republic of Guinea, the progress made by the People's Republic of China over the past few years is proof of the Chinese Government's commitment to a more open and competitive

market based on the rules of the multilateral trading system.

4.616. Since its last trade policy review, growth in China has remained relatively robust. The Chinese economy has proved resilient, supported by sound economic data showing growth at about 6%.

4.617. Thanks to China's impressive progress, 800 million citizens have been lifted out of poverty.

4.618. China has become one of the main motors of world growth, and a major partner of the developing countries in general and the LDCs in particular, through qualitative investment in

sustainable development objectives.


- 71 -

4.619. As you know, China is a long-standing strategic partner for Guinea. The close relations that already existed between our two countries were further strengthened with the signature, in September 2017, of a framework agreement for the financing of priority infrastructure projects to the tune of USD 20 billion over the next 20 years.

4.620. This agreement is the result of several months of negotiations, and comes within the framework of the comprehensive strategic cooperation agreement for the promotion of a win-win

partnership.

4.621. As you know, the Republic of Guinea has a wealth of mineral resources, but lacks the capital to finance the basic infrastructure it needs. This is why the Guinean and Chinese Governments set up a win-win strategic partnership following the 2006 China-Africa Forum.

4.622. The underlying principle of this partnership is to supply China with raw materials and

mining products in exchange for financing and technologies for the development of infrastructure

and industrialization of the country.

4.623. The funding will begin with a total investment of about US$1.3 billion for several infrastructure projects, including roads in the capital, Conakry, the extension of the Port of Conakry, the reconstruction of part of the highway, the building of an electric power line between Linsan and Fomi, and the rehabilitation and extension of a regional university.

4.624. In addition to the Kaléta hydroelectric dam built in 2015 by China, Guinea and the International Finance Corporation (IFC), a member of the World Bank Group, with the capacity of

240 MW, the Guinean Government is currently building a second hydroelectric dam at Souapiti worth US$1.5 billion, in partnership with China and in the framework of public-private partnership.

4.625. Similarly, there are projects to extend the Sino-Guinean hospital, to build Parliament headquarters, and to support the national programme for adaptation to climate change, all funded

by a Chinese grant for a total of approximately US$100 million.

4.626. We note that Chinese companies are also involved in sectors such as health, agriculture, banking, distribution, infrastructure, mining and air transport.

4.627. However, trade between China and Guinea is not very diversified and remains centred on a few traditional industrial products imported by Guinea.

4.628. As an LDC, Guinea is granted certain market access opportunities by the Chinese Government, but makes little use of them owing to the lack of business between Chinese and Guinean SMEs.

4.629. This is why we urge the Chinese authorities to encourage Chinese companies to strengthen

their cooperation with Guinean companies in order to help them build up their market access

capacity.

4.630. To conclude, I would like to take this opportunity to thank China for its different contributions to the WTO on behalf of LDC projects and to invite WTO Members to encourage the People's Republic of China to continue the admirable efforts it has made to modernize its economy since its last trade policy review.

COTE D'IVOIRE

4.631. The delegation of Cote d'Ivoire endorses the statement made by South Africa on behalf of the African Group.

4.632. On Friday, 2 March 2018, the highest authorities of Cote d'Ivoire and China celebrated the 35th anniversary of the establishment of diplomatic relations between our two countries in Adibjan.

4.633. For 35 years, relations between China and Cote d'Ivoire have survived the vicissitudes of time and grown stronger. True to the principles of equality and mutual benefit and respect, the


- 72 -

two countries have become good partners, linked by sincerity and confidence, and working together in mutually beneficial cooperation.

4.634. Cooperation between China and Cote d'Ivoire in the training area is becoming more and more intensive, with some 300 Ivorian government officials and representatives of other sectors participating in different internships, traineeships and seminars in China in the course of 2017.

4.635. China's financial support for Cote d'Ivoire targets many important infrastructure projects,

including the Soubré dam, the Abidjan-Bassam highway, the extension of the Port of Abidjan, the installation of a video-surveillance network in Abidjan, the extension of the national electricity grid, and the Abidjan water supply system.

4.636. The strengthening of friendship and cooperation between China and Cote d'Ivoire is also reflected in China's commitment to help with the implementation of Cote d'Ivoire's National

Development Plan 2016-2020, in particular in the areas of industrialization, agricultural

modernization and infrastructure.

4.637. Turning to trade, we note that trade between China and Cote d'Ivoire increased from US$1.44 billion in 2014 to US$8.85 billion in 2016. This means that China is Cote d'Ivoire's leading supplier and its third trading partner. In 2017, the volume of trade reached US$1.85 billion.

4.638. The Chamber of Commerce of Chinese Enterprises in Cote d'Ivoire (CCEC) was recently inaugurated in Abidjan. This gathering of Chinese companies in Cote d'Ivoire serves as a hub for

cultural and economic exchange between Cote d'Ivoire and China and a platform for the exchange of information, mutual assistance and cooperation.

4.639. As pointed out in the Secretariat report, the Chinese economy has continued to be a major driver of global economic growth. Real GDP grew by 6.7% in 2016, and is expected to increase in

the coming years.

4.640. Income inequality and poverty have decreased. Under the 13th Five-Year Plan (2016-2020), the authorities intend to continue the process of structural and economic reform,

which includes the promotion of private sector participation in the economy as well as the reform of state-owned enterprises, while keeping the preponderance of public ownership. During the review period, China continued to pursue a proactive fiscal policy, which was guided by supply-side restructuring and adjusting to the "new normal".

4.641. Thus, it would appear from both the Secretariat and Government reports, that China is working to fulfil its commitments under the WTO multilateral trading system. Its contribution to

the integration of LDCs and developing countries in world trade is considerable.

4.642. The delegation of Cote d'Ivoire expresses its best wishes for a successful trade policy

review of China, whose support for the development of South-South cooperation is commendable.

GABON

4.643. According to the reports, China's economic and commercial growth is continuing at an annual rate that has increased slightly, from 6.7% in 2016 to 6.8% in 2017. In spite of this relative stagnation, the Chinese economy remains one of the main drivers of world economic

growth.

4.644. Indeed, China has implemented a development strategy focusing, inter alia, on innovation and entrepreneurship, government support for small and medium-sized enterprises, the creation of pilot free trade areas, and the opening up of its market to private capital, in particular banks, which has led to the creation of many companies over the past few years.

4.645. Gabon welcomes the fact that not only is China continuing to open up its economy, but

also remains committed to an open and inclusive multilateral trading system; and we note with

appreciation the personal involvement of the Chinese Ambassador, H.E. Mr Zhang Xiangchen, and his colleagues in this process.


- 73 -

4.646. My country looks forward to seeing China complete its 13th Five-Year Plan as scheduled, in 2020.

4.647. Gabon also welcomes China's efforts to reduce greenhouse gas emissions and cap its coal consumption as reflected in the adoption, under the Five-Year Plan for Energy 2016-2020, of measures such as a shift from coal to natural gas at city-cluster level; a toughening of air-quality standards; and the decision not to construct more than 100 coal-fired plants that had already been

planned.

4.648. Gabon appreciates the excellent cooperative relations with China under the guidance of the highest authorities of the two countries, namely H.E. Mr Ali Bongo Ondimba, President of the Gabonese Republic, and H.E. Mr Xi Jinping, President of the People's Republic of China. These relations have been developing in a lasting and stable manner for some 40 years.

4.649. The partnership is a comprehensive one, forged through the strengthening of multifaceted

relations, particularly in the political and economic areas and at the multilateral level, thanks to convergence on the important issues of major interest.

4.650. Today, nearly 30 Chinese enterprises operate in Gabon, notably in sectors such as health, mining, forestry, the hotel and catering industries, fisheries and the development of infrastructure.

4.651. Gabon appreciates its cooperation with China under the Paris Agreement and in the fight against climate change.

4.652. China's crucial contribution to the Gabonese economy rests among other things on its

proven expertise in the transformation of natural resources with a view to increasing value added and creating jobs – a win-win cooperation that contributes to poverty reduction and development.

4.653. In the first quarter of 2017, China was Gabon's main trading partner, with an estimated

trade volume of CFAF 327.8 billion, compared to CFAF 131.7 billion in 2016.

4.654. From the point of view of South-South cooperation, trade between Gabon and China is highly significant and is a source of great satisfaction to my country.

4.655. Finally, I would like to stress that China remains a major partner in speeding up the

diversification of the Gabonese economy, one of the priorities of our Head of State together with the programme for equality of opportunity for all Gabonese nationals, which is of crucial importance to the President of the Republic.

4.656. Gabon wishes China every success in its trade policy review.

CHAD

4.657. We fully endorse China's vision which firmly defends WTO rules while advocating an open,

transparent, inclusive and non-discriminatory multilateral trading system. My delegation commends China's efforts in various areas, in particular liberalization, trade and investment facilitation, defence of the dispute settlement mechanism, and agricultural export competition.

4.658. Chad also welcomes China's approach to compliance with multilateral trade rules, its determination to meet notification requirements and its commitment to fulfilling its WTO obligations.

4.659. We note that the level of exports from the LDCs, which include Chad, to China, is

extremely encouraging, and has been made possible by the preferential system for LDCs. The LDCs enjoy duty-and quota-free access to the Chinese market for both their agricultural and non-agricultural products. However, much remains to be done for our countries to be able to increase their exports to China.

4.660. We also welcome China's notification of preferential treatment for service suppliers and services of LDCs. We hope that China can provide further assistance in line with paragraph 1.5 of


- 74 -

the Nairobi Ministerial Decision to help implement the preferences provided in its notifications so that LDC suppliers on the ground can appreciate the good news concerning these ratifications.

4.661. Chad appreciates China's support for the "Aid-for-Trade" initiative and its commitment in favour of cotton, the acceding LDCs and the Enhanced Integrated Framework. We rely heavily on China to maintain its approach to trade capacity building in the least developed countries.

4.662. As stated in the Outline of the 13th Five-Year Plan (2016-2020), the Chinese authorities are

intent on continuing the process of structural economic reform, which includes the promotion of private sector participation in the economy, as well as the reform of state-owned enterprises (SOEs), while keeping the preponderance of public ownership. Other measures mentioned in the Plan include the promotion of competition, fiscal reform, financial sector reform to increase private capital participation in banking and expand the provision of financial services, and making the exchange rate and interest rate more market-oriented.

4.663. We encourage China to maintain this momentum and to continue supporting the LDCs, particularly in the structural transformation of their economies and technology transfer.

4.664. In terms of bilateral cooperation, China is an extremely important partner for Chad, a partner with which we would like to further develop our trade relations. Mutual political confidence between our two countries has reached a high level, as reflected in the long-term development plan adopted by President Idriss Deby Itno and his Chinese counterpart Xi Jinping.

4.665. Many meetings of experts, ministers and heads of state have taken place and continue to

take place between China and Chad. From a long-term strategic standpoint, our two countries have always shown mutual understanding and support on issues involving their vital interests and major concerns.

4.666. Chad and China have concluded several agreements, notably concerning infrastructure,

agriculture and water.

4.667. In 2017, China provided Chad with CFAF 17.5 billion for the construction of stadiums and the supply of drinking water in the capital (N'Djamena). This support, together with

CFAF 36 million in emergency food aid, has been in the form of non-repayable grants. A well-drilling project was also completed, as was a feasibility study for the construction of a school for vocational training.

4.668. A trade agreement was signed providing for duty- and quota-free access to the Chinese market for 400 Chadian products, together with an agreement for the export of meat and cotton lint to China. At the same time, China is involved in the exploration and exploitation of petroleum

resources in Chad with the Société de Raffinage de Djarmaya (SNR). The SNR is a Chadian-Chinese consortium that has been in operation since 2011.

4.669. China is also involved in the Sarh spinning industry in Chad, and in the Pala cement works. At the same time, academic cooperation and capacity building as well as sociocultural cooperation between Chad and China have developed considerably. Chad's imports from China consist of manufactured and electronic products.

4.670. The economic and trade outlook for our two countries is encouraging, particularly in

agriculture, mining and tourism. This largely unexploited potential, pinpointed by the Government of Chad in its policy of diversification and structural transformation of the national economy, will help to build up the country's production capacity and to create an important dynamic for international trade with a view to sustainable development.

4.671. Chad wishes China every success with its trade policy review.

BURKINA FASO

4.672. China has become a major world economic power, currently representing more than 15%

of international trade and contributing on average more than 30% of global economic growth annually.


- 75 -

4.673. Although China's economy has slowed down over the past few years, the economic growth momentum achieved over a long period has helped to support its structural transformation.

4.674. As a result, thanks to its enlightened and persistent economic reforms, China has progressively become a major player in the new era of globalization.

4.675. Indeed, China has made the promotion of economic liberalization and trade and investment facilitation a cornerstone of its integration in the multilateral trading system and its

sustainable development.

4.676. The country is actively involved in defending world economic governance based on the fundamental values of multilateralism and the fight against protectionism.

4.677. Turning to trade-related technical assistance, Burkina Faso is grateful for China's continued

efforts to help strengthen production and trade capacity in the countries that are experiencing particular difficulties in deriving benefits from world trade.

4.678. The application to LDCs of an average preferential tariff of 0.7% and a share of duty-free lines of 96.5% provides Burkina Faso with duty-free and quota-free access to the vast Chinese market.

4.679. China remains Burkina Faso's second most important trading partner, accounting for 9.7% of its overall trade.

4.680. With the recent renewal of diplomatic relations with China, the two countries have undertaken new bilateral cooperation projects, particularly in the areas of security, energy,

housing, education, health, trade, industry, agriculture, infrastructure, technology and investment.

4.681. On behalf of the Government of Burkina Faso, let me conclude by expressing the hope that China will continue to show excellent results as it pursues it economic reforms, and by wishing it every success for its 7th Trade Policy Review.

KYRGYZ REPUBLIC

4.682. China is the world's largest trader and is one of the main largest trading partners of the Kyrgyz Republic.

4.683. For the period 2013-2015 the average goods turnover between our countries is US$1,22 billion.

4.684. Kyrgyzstan's export to China mainly comprises of raw materials (raw skin, ferrous and non-ferrous scraps, different types of metals, certain types of hydrocarbons and others).

4.685. China imports to Kyrgyzstan: machinery (industrial equipment), diversified goods from metal, electrical machinery and equipment, textiles and different types of garments, various food

products, building materials, other products.

4.686. As of today, our countries have signed numerous agreements, which set a certain basis in regard to legal framework, administrative processes etc. which is allowing further development of a mutually beneficial relations and diversified cooperation on bilateral level, as well as on the regional and international levels including in the framework of Shanghai Cooperation Organization, the United Nations, WTO and other international organizations.

4.687. The Kyrgyz Republic was one of the first to officially confirm the country's active

participation in the revival of the Great Silk Road in 2014. The initiative on economic development framework for primarily integrating trade and investment in Eurasia by building the Silk Road Economic Belt (also known as One Belt, One Road Initiative) is being considered by Kyrgyz Republic as a way to promote the opening up of inland and border areas as well as

balanced development among different regions.


- 76 -

4.688. The partnership has achieved new era of evolution during the last meeting held in China between the Presidents of the Kyrgyz Republic and China. As result of those meetings, China and Kyrgyzstan have agreed to establish a comprehensive strategic partnership.

4.689. We are pleased to see that China continues to deepen its market-oriented reforms, moving in the direction of liberalization and simplification of its procedures, including customs reforms, which will contribute to removing trade barriers.

4.690. Taking the opportunity, the Delegation of the Kyrgyz Republic wishes the People's Republic of China a very successful seventh Trade Policy Review.

ZIMBABWE

4.691. Since China's last trade policy review in 2016, the Chinese economy continued to be a

major driver of global economic growth, with GDP growth moderating around 7% per year. Real GDP growth grew by 6.7% in 2016, and was expected to be around 6.8% in 2017. We are

delighted to note that China's economic growth has transitioned from a phase of high growth to high quality growth and development with a new vision based on an open economy which has become a growth and development model.

4.692. China is an active member of the WTO and continues to contribute towards shaping the agenda of the Multilateral Trading System. They have also championed the cause of the small economies in terms of provision of technical assistance for accessions and cotton development amongst others as well as guidance in DDA negotiations.

4.693. At bilateral level, since 2012, Trade between the two countries has generally been in Zimbabwe's favour, surpassing a mark of US$1 billion per year. Tobacco is Zimbabwe's largest single export commodity to China, with nearly 60% of total exports being absorbed by China, while machinery and equipment are the country's single largest imports from China. There is great

scope to increase these trade figures if the trade potential and market access opportunities between our two countries are fully tapped. Zimbabwe has diversified the country's markets for flowers to China where the demand is growing. Furthermore, the process to facilitate the

exportation of Zimbabwe citrus fruits and other products is underway.

4.694. China continues to be Zimbabwe's biggest source of foreign direct investment. To this end, the two countries are considering reviewing the Bilateral Investment Promotion and Protection Agreement (BIPPA) to improve its scope in line with new international best practices.

4.695. Effort is being put to promote business-to-business engagement to further strengthen relations between the two countries' private sectors and attract more investments.

4.696. Investment inflows into Zimbabwe from China have been increasing from US$189 million in 2015 to around US$300 million in 2017 and is expected to exceed US$2 billion in 2018. A

number of Chinese companies have been contracted to implement some projects in Zimbabwe using both concessional and commercial loans sourced from China Eximbank.

4.697. China is cooperating with Zimbabwe in the planning, construction and management of Zimbabwe Special Economic Zones and to this end, Chinese Government extended training to Zimbabwe Government officials on the operationalization and management of these zones.

4.698. The Chinese Government has also extended financial and technical support to the Government of Zimbabwe for the following infrastructure development projects:

• Kariba South Hydropower Expansion Project which was commissioned in March 2018 with capacity to generate 300MW of electricity into the national grid.

• The 600MW Hwange 7 & 8 Thermal Power Expansion Project worth US$1,5 billion which was commissioned for construction on 27 June 2018.

• Upgrading of the Victoria Falls International Airport to an international gateway.


- 77 -

• Harare City Council's Sewer and Water Reticulation Project

4.699. Zimbabwe anticipates more investments from mega deals already signed between Zimbabwe and China.

4.700. Furthermore, Zimbabwe is open for inflows of foreign direct investment from China and envisions becoming one of China's leading economic, technological and industrial development partners in Southern Africa.

4.701. I wish China a successful trade policy review.

MALI

4.702. My delegation associates itself with the statement delivered by Benin as coordinator of the

Group of Co-Sponsors of the Sectoral Initiative in Favour of Cotton (C4).

4.703. We have noted with particular interest the continued efforts of the People's Republic of China to improve their participation in international trade in accordance with the WTO rules, and in

the facilitation of trade with other WTO Members.

4.704. Despite a challenging world economic environment, Chinese imports and exports grew from US$3,685.5 billion to US$4,107 billion between 2016 and 2017, representing an increase of 11.4% in one year. These results are the fruit of significant structural and economic reforms undertaken by China in recent years, which have enabled it to become one of the world's leading economic powers.

4.705. We also appreciate China's efforts at transparency, which do a great deal to improve the

level of trade with its partners. The results achieved, which are mentioned in China's report, are

remarkable, particularly with regard to South-South cooperation and bilaterally with my country.

4.706. We welcome the excellent political, economic, trade and cultural relations between China and Mali, for which China is one of the main development partners.

4.707. Mali is one of the privileged beneficiaries of the foreign aid provided by the People's Republic of China for major infrastructure projects in all development sectors of the country's economy, particularly in the transport, agricultural and digital sectors.

4.708. We share the position held by China, which reaffirms its trust in the multilateral trading system and the vital role of the WTO in that system, and appreciate its support and availability during the negotiations on cotton within the WTO. We encourage China to pursue and persevere with its reform policies for the benefit of multilateral trade.

CUBA

4.709. I would like to begin by pointing out that not only has China been one of Cuba's major

trading partners for decades, but that partnership continues to develop, and we feel certain that our solid historical ties will grow ever stronger.

4.710. The Chinese economy clearly continues to be one of the main drivers of world economic growth. Since joining the WTO, China has done its part, as a responsible Member, to fulfil the broad market access commitments that it undertook during the negotiations and to meet the numerous obligations it assumed.

4.711. As a WTO Member, China participates actively in the daily work of the Organization. It is

also a fervent defender and staunch supporter of the multilateral trading system. We join other Members in congratulating the Chinese Ambassador and the entire team in Geneva for their work.

4.712. China was one of the first Members to ratify the Agreement on Trade Facilitation and is

meeting its obligations under that Agreement. It points out that it has only four Category B measures and that its Category A measures account for 94.5% of the total. It has undertaken to


- 78 -

apply all Category B measures during the three-year transition period. It does not have any Category C provisions.

4.713. China should particularly be commended for the significant decrease in its income inequality and poverty levels. Between 2013 and 2017, it made decisive progress in lifting over 68 million people out of poverty, including the relocation of 8.3 million individuals living in inhospitable areas, and the reduction of the poverty headcount ratio from 10.2% to 3.1%.

4.714. China has made a positive contribution to the development of South-South cooperation, to the implementation of the 2030 Agenda for Sustainable Development, and to the building of a community with a shared future for mankind. At the same time, it provides support for many developing countries and has granted unilateral trade preferences to LDCs. China also deserves credit for providing duty-free treatment to a number of LDCs on 97% of tariff lines in December 2017.

4.715. Through continuous reform and opening-up, China has established an economic and trade system in line with both its national conditions and international prevailing rules and practices. It is currently the main trading partner of over 120 countries and regions.

4.716. China continues to strengthen its administrative and judicial protection of intellectual property rights, and has strengthened its long-term mechanisms to guarantee that protection.

4.717. Furthermore, it has always held that an open, inclusive and non-discriminatory multilateral trading system was the critical institutional guarantee that promoted world economic growth and

trade facilitation and liberalization.

4.718. China has repeatedly stressed that trade frictions and disputes should be addressed through constructive dialogue, consultations and communications, based on mutual respect and in accordance with WTO multilateral trading rules. It has expressed its deep concern over the

unilateral and protectionist practices of a Member that is openly in breach of the fundamental rules and spirit of the WTO, the GATT and the Agreement on Safeguards.

4.719. We wish China every success in this trade policy review and in its efforts to achieve higher

levels of development, and to improve the well-being of its people.

BOLIVARIAN REPUBLIC OF VENEZUELA

4.720. This trade policy review is special in that it coincides with the 40th anniversary of China's reform and opening-up process. Today, we are able to appreciate the fruits of an unprecedented model that has served as an example to the world of sustainable economic growth.

4.721. In this regard, I am pleased to add the Bolivarian Republic of Venezuela to the long list of

Members that have recognized China as a strategic and reliable trading partner.

4.722. China and Venezuela established diplomatic ties in 1974. Since then, our bilateral relations have flourished, particularly in the last two decades. We have signed around 470 agreements involving over 700 bilateral economic and technological cooperation projects, mainly in the areas of energy and mining, agriculture, infrastructure and high technology. Our relations have now been defined and consolidated as a Strategic Partnership for Joint Development, and this has made for better mutual understanding and broader and deeper bilateral cooperation.

4.723. At the international level, we share the same ideals and defend common principles. We are both firm advocates of South-South cooperation and we oppose any hegemonic pretensions on the part of those who wish to undermine the sovereignty of States through the imposition of unilateral coercive measures. We are interested in preserving and defending the multilateral trading system; for example, together with most WTO Members we call for the prompt initiation of the selection process to fill the vacancies in the Appellate Body, which have already undermined one of the Organization's main functions.

4.724. Such unity is particularly important in the current context, in which we are witnessing serious attacks against multilateralism and the legitimacy of the development policies implemented


- 79 -

by some countries to enhance their participation in world trade, increase local value added, and promote industrial diversification and technological convergence.

4.725. We appreciate China's efforts to fulfil the commitments that it undertook when it acceded to the WTO, and we wish it every success in the current trade policy review.

GEORGIA

4.726. We are pleased to see that Chinese economy remained as one of the major drivers for

global economic growth during the reviewed period. Although the Chinese economy is in the process to adjust the "new normal", which implies more stable, albeit lower growth rates, we commend that China managed to reach 6.7% real GDP growth in 2016 and 6.8% growth in 2017.

4.727. We would also like to highlight that China continues to be one of the largest recipients of

foreign direct investments in the world. FDI inflows have been growing for a number of years and the trend continued in 2016. China is a significant overseas investor. Outward FDI has also been

trending upwards for a number of years. We are pleased to note that China's investments in Georgia has dramatically increased in 2017 estimating 89% growth compared to 2016 reaching US$53 million. We do believe this growing trend will continue in the future.

4.728. China is a very important trade and economic partner of Georgia. Both countries display an exemplary strong cooperation in order to reach common economic goals.

4.729. The clear example of the existing cooperation is the joint effort to develop the New Silk Road initiative which is one of Georgia's main priorities. International event "Belt and Road Forum"

launched last year in Georgia was specifically dedicated to the objective to create new platform, which serves to enhance the cooperation in crucial sectors such as trade and establishment of business contacts, investments, tourism, transport, energy and other important areas. Pursuing this spirit, we strive not only to maintain, but also to further develop amicable relations in all

areas.

4.730. China and Georgia also enjoy very active and fruitful cooperation in the format of Central Asia Regional Economic Cooperation (CAREC) program. It is another organizational platform to

enhance and consolidate trade and economic ties by means of new bilateral and regional projects encompassing multiple areas such as trade facilitation, transport, energy and other significant fields.

4.731. From the economic viewpoint, it is important to note, that China has always taken primary positions among Georgia's foreign trade partners. Trade relations between the two countries have been dynamically increasing over the course of past years. Trade turnover between China and

Georgia in 2017 amounted to little less than US$1 billion, which constitutes an increase by 31% as compared to 2016. There are also significant improvements in exports from Georgia to China estimating US$210 million in 2017 – a number indicating a 23% growth since previous year.

4.732. It is also very important to note that in January this year the free trade agreement between China and Georgia became effective. Let me underline that Georgia is the first country in the region to enjoy an FTA with both the EU and China. Georgia-China FTA not only enhances trade and economic links between two countries, but also has broader regional benefits. Georgia

emerges as an attractive FDI destination for investors, who seek to enter or further intensify economic ties with Europe. On the other hand, investors from the EU will have better access to untapped economic potential of South Caucasus and Asia regions.

4.733. In conclusion, we would like to reiterate that China is a valued partner of Georgia. We strongly believe the existing durable and amicable cooperation will be maintained and developed through continued joint efforts in the future.

4.734. We wish China a successful review.


- 80 -

KENYA

4.735. Kenya enjoys cordial and constructive economic and trade relations with China. Over the past years, the relationships have continued to achieve significant progress. The bilateral trade between Kenya and China have steadily grown and continues to yield positive benefits to both countries. We note that China became the leading source of Kenya's imports since 2015. In 2017, goods from China accounted for 22.6% of our total imports, while the total bilateral merchandise

trade between the two countries amounted to US$3.5 billion, with trade balance tilted heavily in favour of China. We believe that there is immense potential for trade expansion between the two countries.

4.736. China is an important partner in the implementation of Kenya's Vision 2030 capital-intensive flagship projects such as the Standard Gauge Railway line. Since its launch of operations in June 2017, The Nairobi, Mombasa Standard Gauge Railway has archived tremendous results in

terms of contribution to Kenya's GDP and lowering of transport and logistic costs. We believe that there is room for further improvement in our economic and trade ties.

4.737. According to the secretariat report, China's growth rate has stabilized, and in overall terms the economy has performed well, with a positive growth prospect. Real GDP grew by 6.7% in 2016 and 6.8% in 2017, with domestic consumption playing an increasingly important role in China's economic growth.

4.738. We note that merchandise trade declined from 33.5% of GDP in 2015 to 31.2% in 2016,

with both exports and imports falling. Exports, which accounted for 93.7% of total merchandise exports in 2016, continue to be dominated by manufactures, while merchandise trade accounted for 32.3% of GDP.

4.739. China continues to be one of the world's largest recipients of Foreign Direct Investment. FDI inflows have been growing for several years and this positive trend continued in 2016. China is

also a significant overseas investor, with outward FDI experiencing increasing growth for several years.

4.740. We commend China for putting in place an ambitious reform programme under its 13th Five-Year Plan since last review, that continue the process of structural economic reform namely the promotion of private sector participation in the economy, the reform of state-owned enterprises, the promotion of competition, fiscal reform, financial sector reform, the introduction of measures to reduce overcapacity, strengthening local government borrowing frameworks, and the addressing of financial sector risks.

4.741. China is a strong defender of a rules-based multilateral trading system. Since its Accession in 2001, China has participated actively in the WTO's regular work programmes and trade negotiations. China accepted the Agreement on Trade Facilitation in September 2015 and during the review period has fulfilled most of the notification requirement under the Trade Facilitation

Agreement, such as notification of category A and B commitments and indicative implementation date for most the of Category B commitments. We commend China's continued effort to reform and harmonize it customs procedures. This has led to reduction of the clearance times of imports

to an average of 16.7 hours and for exports to a nationwide average of 1.1 hours in 2017, with Single Window now absorbing one third of declared imports.

4.742. During the review period we also note that China did not maintain or introduced any export subsidies on agricultural products. China also offered 97% duty-free, quota-free access to all LDCs during the review period.

4.743. At regional and bilateral levels, China concluded and signed two new Regional Trade Agreements with the Maldives and Georgia. China is also negotiating new and reviewing existing

agreements with a view of expanding trade volume and optimizing benefits from these trade agreements. Kenya therefore appreciates the continuous effort of China to open its market and promote trade and investment liberalization.

4.744. We also appreciate China's contribution to the WTO's Aid for Trade initiative and Trade-Related Technical Assistance Programme for least-developed countries under the China


- 81 -

Programme devoted in helping LDCs integrate into multilateral trade system as well as support them to implement the trade policy review recommendations.

4.745. In conclusion, we wish China every success in their seventh Trade Policy Review.

MOZAMBIQUE

4.746. As indicated in the reports and also referred to by the Deputy Minister in his presentation, the People's Republic of China Government has continuously undertaken reforms that enabled a

situation of a more open policies since 1978, and those reflect the China's current broader reforms, that not only characterize the current trade regime, but several reforms and improvements being undertaken in several areas of the Chinese economy.

4.747. The reforms enabled the country to achieve a historic juncture, on its development; a new

stage to which China remains committed to; a new vision of development and an open economy.

4.748. We commend the Government for its determination to continue reforms modernization,

firmly contribute to safeguard the Multilateral Trading System and oppose protectionist trends, thus, contributing for promotion of free trade areas and enhancing inclusiveness, more openness and cooperation.

4.749. Thanks to liberalization of governance system vision of development, China was able to build a new system aiming at development, which can be testimony in various fields of action having the annual growth rates shown very positive status during sequential years, as well as the evolution of the Gross Domestic Product (GDP), despite global economic trends.

4.750. The strong engagement and Government's commitments, based on the undertaken economic policies and other relevant reforms, led the Government of People's Republic of China to a successful promotion of development, aiming at structural transformation, more job creation,

strengthening of small and medium enterprises, all these, being driven towards poverty reduction and economic development.

4.751. All the initiatives undertaken by the Government aiming at a more openness and multilateral advancement are well commended, and at a moment some challenges arise, the

People's Republic of China's Government is among countries that encourage its companies to invest in Mozambique, in view to help and contribute to creating conditions for future development.

4.752. It is our hope that the Government will continue to achieve its long-term objectives of the reforms and development strategies, based on the common Vision and Strategies on trade, industry, and other sectors, guided by the assumption that trade can lead to growth and

development, and that can also contribute to the attainment of the Sustainable Development Goals.

4.753. Mozambique and China enjoy long and friendly bilateral relationship that has been being translated into substantive actions of cooperation in domains of agriculture, industrial productive capacity building, food aid, aquaculture development, horticulture and other areas, just to mention some.

4.754. Within triangular cooperation, Mozambique is beneficiary of the Programme of Partnership

for Investment and Growth in Africa together with 3 more African countries, through which, there has been exchange of visits in view to strengthening productive capacity, small and medium enterprises development, job creation, that has been under implementation and assistance of the International Trade Centre.

4.755. In trade area, Mozambique's exports to People's Republic of China are composed of different range of goods; that include metals, cement line products, fish, precious stones, salt, wood and wood products, so to mention some. Imported goods from China include; mechanical

machinery, equipment, vehicles and spare parts, so to mention some, having in 2017, totalized US$252,158 and US$493.355 million, respectively.


- 82 -

4.756. Some of the areas of engagement of Chinese companies are infrastructural projects, agriculture, capacity building on aquaculture and other areas. Most recently, China is engaged in a triangular cooperation under the Partnership for Development in Africa that involves some other African countries, Tis, envisages diversification of production and exports, job creation.

4.757. Though recognizing that challenges still remain, it is our hope that, with strong policies, strategies, openness, reforms, determination, inclusion and so forth, the economic development as

well as resilience will prevail, and the Global Economy as well as the Multilateral Trading System in general will benefit.

4.758. To conclude, we wish China a successful 7th Trade Policy Review.


- 83 -

5 REPLIES BY THE REPRESENTATIVE OF CHINA AND ADDITIONAL COMMENTS

5.1. Over the past couple of days, Mr. Chair, the Discussant, as well as Ambassadors and representatives of 66 Members offered observations on China's economic and trade policies during the period under this review. Most of their opinions are constructive, but some are completely unacceptable. However, I can assure you that my colleagues and I will take all the comments very seriously. On behalf of the Chinese delegation, I would like to thank you all for your input.

5.2. I would also like to express my appreciation to Members' acknowledgement of China's fulfilment of its WTO obligations and commitments, China's efforts in advancing higher-level opening-up and firm support for the multilateral trading system.

5.3. Some Member mentioned "Actions speak louder than words". That reminds me of an old saying in China, "No sooner said than done". Just three months after President Xi Jinping made his

speech at the Boao Forum for Asia this year, the relevant opening-up measures that he referred to

have been implemented in succession.

5.4. June 28th saw the release of the 2018 revised negative list for foreign investment, introducing 22 opening-up measures in such areas as financial services, automobile manufacturing. Since July 1st, import duties on automobiles and car parts among nearly 1,500 tariff lines of consumer goods have been lowered. And of July 9th, the Government of China unveiled another 15 specific measures for promoting trade liberalization and facilitation.

5.5. The majority of questions and issues raised by Members in their interventions have already

been responded to in my opening statement the day before, and China's written replies to written questions. Let me now take this opportunity to approach and clarify the priority areas identified by Members.

Regarding the role of the Government.

5.6. The 3rd Plenum of the 18th CPC Central Committee held in 2013 spell out the relationship between the Government and the market, letting the market play the decisive role in resources allocation and the Government play its role better.

5.7. In recent years, the role of market has been brought into full play in China. The interest rate is already market-based, and the market-oriented exchange rate formation mechanism has been constantly improved. Restrictions on the access of foreign investors have been cut by nearly two thirds. And investment in areas outside the negative list is by and large administrated through the filing for record system. The number of products and services subject to central government-set pricing is only 7 now, mainly those prone to natural monopoly, as well as important public utilities

and services relating to public benefit. These are natural gas, certain water supply (for water conservancy), electricity, special drugs and blood, certain transportation, postal and professional services.

5.8. On the other hand, the Government has been playing its role better. We have vigorously strengthened IPR protection, minimized monopoly, and continuously improving the business environment. For example, foreign investors in China feel very secure. No one in China has to worry falling victim of gun violence.

5.9. It is due to both the decisive role of the market and the better role of the Government that China has achieved rapid development, and provided opportunities for its trading partners. The current situation is not perfect of course, but China will continue enabling its Government and its market optimally play their respective roles.

Regarding Made in China 2025

5.10. According to UNCTAD studies, over 100 countries in the world have supportive industrial policies. About 60% of them are for manufacturing, and 25% are related to the new round of

industrial revolution.


- 84 -

5.11. The US once released many strategic programmes or policy acts, like Manufacturing Enhancement Act of 2010, Advanced Manufacturing Partnership 2012, and National Strategic Plan for Advanced Manufacturing 2012, just to name a few. Germany has a plan entitled Industry 4.0. and France has New Industrial France 2013.

5.12. Made in China 2025 is essentially the same in nature as these plans and programmes I just mentioned. It is implemented in an open, transparent and non-discriminatory manner. It applies to

both Chinese enterprises and FIEs in China, and in certain aspects, it even applies to foreign companies. In fact, many foreign enterprises including American ones have already participated in the projects implemented under Made in China 2025.

Regarding overcapacity

5.13. Overcapacity is a global economic issue of both cyclical and structural nature. The

United States in the 1970s and Japan in the 1980s both encountered with the overcapacity issue in

crude steel sector.

5.14. The 2008 international financial crisis resulted in global economic recession and decline in global market demand. To deal with the crisis, China adopted an economic stimulus plan to boost domestic demand and expand fixed-assets investment, thus contributing to rescuing the world from the crisis. As a side effect, China's responsible actions also led to capacity increase in steel.

5.15. Taking a responsible position again, China has been making tremendous efforts to address domestic overcapacity. So far, China is the only country that has set a quantitative indicator and

acted to accomplish it. For 2016 and 2017, China cut its capacity of crude steel by 120 million tonnes in total. Director General Edwin Basson of the World Steel Association said that the global steel industry has felt the significant contributions made by China to capacity reduction.

5.16. Although China's steel and iron production accounts for half of the global total, no worry

that it would affect your industry a lot. Because China's steel and iron export only takes up 9.5% of its total production, while some other countries export 65%, 39% and 47% of their production respectively today. Addressing overcapacity needs collective actions. China stands ready to join

hands with other countries to tackle this global problem together.

Regarding SOEs

5.17. SOEs can be found in many WTO Members. The United States has Fannie Mae and Freddie Mac. Canada, France and a number of developed Members also have SOEs.

5.18. SOEs in China, just like private companies, FIEs and other types of enterprises in China are independent market players that compete on a level playing field. If a Member believes that

certain SOEs get special subsidies from the Chinese Government, and if their exports affect Member's domestic industry, the Member could just conduct countervailing investigations

according to the rules of the SCM Agreement, just like what they normally do with private companies and FIEs. WTO rules can address this issue adequately.

Regarding IPR

5.19. Strengthening IPR protection is the inherent demand of China's innovation and development. It serves the interests of Chinese enterprises, and it also caters to the interests of

foreign companies.

5.20. China has no law that mandates the transfer of technologies by foreign enterprises to their Chinese cooperation partners. The technical cooperation between Chinese and foreign companies are absolutely contractual behaviour based on voluntary business deals. As for the groundless accusation of IPR theft, I wish to emphasize that the Chinese Government has established a relatively complete legal system for IPR protection, set up IPR courts and dedicated tribunals. The dominant role of judicial protection of IPR has been continuously cemented in China. And we will

keep improving upon enforcement.


- 85 -

Regarding cyber security and data flow

5.21. By implementing its Cyber Security Law and regulating data flow, China does not intend to impede cross-border data flow, let alone restricting international trade. Rather, the aim is to ensure cyber security and orderly flow of data within the applicable legal framework, protect the legitimate rights and interests of its citizens and legal persons, and safeguard national security and social public interests.

5.22. As a developing Member, China has to take these measures to prevent incidents like data leakage by Cambridge Analytica, and prevent the interference into China's domestic affairs by external powers that should jeopardize China's stability and security.

Regarding transparency

5.23. Like the vast number of developing Members, China still faces capacity constraint when it comes to implementing the transparency obligations. However, China has all along been sparing

no efforts in honoring its notification obligations under the WTO agreements. We submitted the first notification on subsidies at the sub-central government level before the last TPR. Prior to this TPR, we handed in the 2015-2016 notification for both central and sub-central subsidies programmes. The notification encompasses 190 items in such fields as R&D of enterprises, environment protection and energy conservation, as well as fisheries. And for the first time, programmes in all provincial-level administrative regions in China are reflected.

5.24. In terms of the domestic support notification, China has basically completed technical

preparations. However, in view of the ongoing WTO disputes, submission has to be postponed.

Regarding GPA

5.25. On top of China's persistent endeavor to join the GPA at an earlier date, President Xi Jinping

announced at the Boao Forum for Asia in April this year that China will pace up the process. That is a reiteration of China's consistent position by our top leader. A revised offer will be submitted to the WTO as soon as possible.

5.26. China has already made considerable efforts to join the GPA. However, its accession process

depends on not only China's own efforts, but to a large extent, the positions and expectations of the parties to the GPA. We hope that all the parties could adopt a flexible and pragmatic attitude towards China's joining the GPA as well.

Regarding support for developing Members and LDCs

5.27. China's status as the world's largest developing country has not changed. At present, per capita GDP in China is below US$9000, ranking the 71st globally. Due to imbalanced and

incomplete development, more than 30 million rural people still live in poverty. China lags far

behind the developed countries in pension, healthcare and other social security areas. It is therefore unrealistic to require China to undertake the same responsibilities as developed Members.

5.28. However, China is ready to shoulder the international responsibilities commensurate with its development level and capacities. We are willing to provide support to developing Members, especially LDCs within our capabilities. We have actively expanded import, promoted investment

and firmly supported the implementation of S&D entitled to developing Members under the multilateral trading system. As regards the first China International Import Expo to be held in the coming November, we will provide assistance and convenience to exhibitors from developing countries and exempt LDCs from their participating fees. A country or any country pursuing state-led mercantilist trade policies would never do that.

Regarding the Belt and Road Initiative and the WTO

5.29. The Belt and Road Initiative aims at deepening cooperation among countries in a pragmatic

manner for shared prosperity. Adhering to the principle of achieving shared benefits through


- 86 -

consultation and collaboration, it is open to all like-minded friends. These are in line with the objectives of the WTO, and compatible with WTO rules.

5.30. It is worth mentioning that the Belt and Road Initiative explicitly proposed, in terms of unimpeded trade, that the multilateral trading system with the WTO at its core be upheld, trade and investment liberalization and facilitation be advanced, and protectionism be strongly opposed. This initiative will be implemented in a manner consistent with the multilateral trading rules.

Regarding FTAs

5.31. While firmly safeguarding the multilateral trading system as the main channel, China has been vigorously promoting free trade arrangements with its trading partners. Our recent FTA negotiating partners include Moldova, Mauritius and Panama. China will remain committed to building a network of high-standard free trade areas which is open to the world. We look forward

to making progress jointly with our FTA partners and attaining the objective of common

development.

5.32. This concludes my responses to the key issues identified in the first session of this TPR. I thank you all very much for attention.

DISCUSSANT

5.33. Let me, first of all, congratulate Vice-Minister Wang Shouwen and his team for the outstanding work done in this review.

5.34. As we are nearing the end of our deliberations, my impression is that one theme has

permeated many interventions by Members. This was the necessity for a shift of emphasis in China's economy, a transition from quantity to quality.

5.35. In some ways, this was also reflected in the lively exchange we had on the first day of this review. There was an exceptionally high number of Members who took the floor. What followed was a high number of statements of outstanding quality. This is a clear sign that China matters to all of us. That its trade and investment policies are taken very seriously and studied very carefully in our capitals. It shows the degree to which China has become a key Member of the multilateral

trading system.

5.36. How can one sum up this lively discussion? How to do it justice in light of the wide spectrum of different interventions?

5.37. There was much praise for what China has achieved. It became manifest that China's commitment and sense of initiative at the WTO is highly appreciated by many Members. The "Belt and Road initiative" has become a significant element in the economies of a number of Members.

5.38. At the same time, virtually no delegation felt that China should rest on its laurels. To put it more bluntly, it became obvious that the status quo is not an option. China was encouraged to pursue an ambitious reform agenda.

5.39. Membership at the WTO is multifaceted. We all have different types of economic models, differing frameworks for trade and investment. Yet, at the centre of this diverse universe is a more or less common belief in the virtues of market forces. So, in a way, it was no surprise that many called for rolling back the frontiers of the Chinese State, for more openness and liberalization. To

create more competition and a level-playing field.

5.40. At the same time, if State intervention is to be, it should be made more transparent. This was also expressed by numerous delegations. Competitors want to know under what conditions they have to compete with their Chinese counterparts. It was a positive sign that this trade policy review coincided with a set of notifications made by China, which had been pending.

5.41. May we take this step as a sign that there will soon be more transparency? More transparency when it comes to official support for the agricultural sector as well? Given the size of


- 87 -

China's agricultural market, it is only natural that a great number of Members show a keen interest in this type of government intervention.

5.42. Moreover, a number of foreign competitors are of the view that if the Chinese State intervenes in the economy, it should do so more even-handedly. Regulations, in particular behind-the-border-measures, should be more predictable and consistent with WTO obligations. On top of that, the regulatory framework is of a certain complexity. Here, much could be done to

improve the overall conditions under which businesses operate.

5.43. Then, overcapacity remains a recurring issue. It had been dealt with at the previous review. And it did come up again at this review even though China has already undertaken concrete steps to reduce excess capacity in some areas.

5.44. Some new themes did emerge since the last review. China's drive towards innovation and to

prepare the country for the new digital age was discussed at greater length this time. What struck

me was the worry expressed by some that in this push towards modernity, some of the controversial policies followed in the past could be reissued. Will there be new industries benefitting from special treatment or subsidies which - in turn - could create another situation of overcapacity?

5.45. Cross-border data flows are closely entwined with the digital economy. Within this context, a number of Members considered that care should be taken to avoid unnecessary barriers to the free flow of data.

5.46. In any event, no modern economy may flourish and be competitive in the long run without a solid protection of intellectual property rights. I am under the impression that the strong call by several Members for better enforcement of IPR in China did not go unnoticed.

5.47. In time for this trade policy review, the Chinese authorities have published a White Book on

China and the World Trade Organization. It is a document which contains a wealth of information. But more importantly, it holds out the promise of more reforms. There is to be more openness, more liberalization and – yes – a better level-playing field.

5.48. At the core lies China's commitment to the multilateral trading system. It is a common thread which runs through China's work at the WTO and through the White Book. We are confident that this compelling commitment will be followed up by concrete actions. China lifted itself out of poverty. It certainly has the capacity to transition towards a more market-based economy. Nothing would strengthen the multilateral and rules-based trading system more than a tangible reform effort by one of its most important Members.

5.49. The WTO did much for China. It offered the country a predictable framework for what you might call a first phase of internal reforms. It helped China derive considerable benefits from globalization. As China received much, there are now expectations that it assumes responsibility

and lead by example. The orientation of its second wave of reforms was set out in the report of the Chinese Government for this TPR, and I quote "The core issue is to properly handle the relationship between the Government and the market, so that the market plays the decisive role… and the Government plays its role better".

5.50. With this, I would like to conclude, Mr. Chairman.

DOMINICAN REPUBLIC

5.51. In this seventh review of China's trade policy, we note that as indicated in the Secretariat report, China remains one of the main drivers of world economic growth, a status it had already achieved two years ago when its previous trade policy review took place. However, its economic growth has slowed somewhat, with real GDP increasing by 6.7% in 2016 and by a similar amount in 2017, compared with 7.3% in 2014 and 6.9% in 2015. Furthermore, we note that the sources of

economic growth in China have rebalanced from investment to consumption, from external to internal demand, and from manufacturing to services. It is interesting to observe that consumption

accounted for almost two thirds of the growth and that the share of services in GDP exceeded 50% for the first time in 2015, with a particularly strong showing for e-commerce sales and tourism services imports. We congratulate the People's Republic of China for maintaining these growth


- 88 -

rates while at the same time ensuring that they led to a reduction in income inequality and poverty levels.

5.52. We also note that under the 13th Five-Year Plan (2016-2020), the authorities plan to pursue the process of structural reform of China's economy, which includes boosting private sector participation in the economy and the reform of state-owned enterprises. Other important measures included in the Plan are the promotion of competition, tax reform, financial sector

reform to enhance private capital participation in banking and the broadening of the supply of financial services, and the adoption of largely market-based exchange and interest rates. We are also pleased to know that China has made progress with the reforms to address overcapacity in some industries. We hope that China will continue its efforts to move towards a market economy, and we encourage it to pursue these reforms.

5.53. We are pleased to note that during the review period China continued to encourage foreign

direct investment and joint ventures between Chinese and foreign companies. It also continued to expand the pilot programme to reform the foreign investment regime, launched in 2013 through the establishment of the Pilot Free Trade Zone (Shanghai) and which now comprises 11 pilot free trade zones.

5.54. With regard to trade facilitation, China has pursued its efforts to reform and harmonize custom procedures in order to make them more efficient. Approximately one third of imports are now declared through single windows. Clearance times of imports were reduced to an average of

16.7 hours in 2017 from over 22 hours in 2016.

5.55. We observe that China has a fairly open tariff regime. The simple average applied MFN rate as of December 2017 was 9.3%, slightly lower than in 2013 and 2015, as a tariff reform implemented in December 2017 reduced applied MFN tariffs for some 200 consumer products. We also note that China has made moderate use of trade remedies in the period under review.

5.56. The Secretariat report indicates that, during the review period, China submitted a number of notifications to the WTO, although those regarding state trading enterprises, domestic support and

the subsidies granted by the central government are still pending. We urge China to submit these notifications as soon as possible.

5.57. At the same time, we note with satisfaction that in the area of competition policy, significant legislative reforms have been implemented through the amendment of the Anti-Unfair Competition Law, which entered into force on 1 January 2018. The new Law removes overlaps with the Anti-Monopoly Law by, inter alia, deleting provisions prohibiting public utility enterprises or

monopolistic enterprises from requiring consumers to purchase designated products, and provisions on collusive tendering. Furthermore, the new Law introduces provisions on the prevention of unfair competition activities carried out by technological means on the Internet.

5.58. Lastly, we have submitted questions to the Chinese delegation on, inter alia, subsidy

notifications, value added tax and plans to promote small and medium-sized enterprises, and we are grateful for the replies, which we shall examine with interest. We urge China to continue its reform process aimed at opening up trade, and wish it every success in this trade policy review

and in the future.

URUGUAY

5.59. Uruguay maintains friendly and constructive ties with China in the various spheres covered by our bilateral relations, which include not only policy, the economy and trade, but also corporation and culture.

5.60. Uruguay and China established diplomatic relations on 3 February 1988, so that this year marks the 30th anniversary of the event.

5.61. Since China's last trade policy review in 2016, bilateral relations between Uruguay and

China have grown stronger. High-level meetings and the significant increase in trade between the two countries has made China Uruguay's main trading partner. The relationship was further strengthened by the State visit of the president of the Eastern Republic of Uruguay,


- 89 -

Dr. Tabaré Vázquez, to the People's Republic of China in October 2016. The most significant result of this visit was the signing of a joint declaration between the two countries covering the most important aspects of the bilateral agenda, and above all, elevating the relationship between the two countries to the status of strategic partnership.

5.62. As mentioned, trade between Uruguay and China has increased significantly over the past decade. In 2017, Uruguay's trade balance showed a surplus of US$122 million. That year, bilateral

trade reached US$3.4 billion. Uruguay's goods exports to China reached a new historical record in 2017 with an increase of 56% over the previous year, representing 22% of Uruguay's total sale of goods abroad for that year.

5.63. Uruguay's main export in 2017 was soya beans, with a total of US$747 million exported, representing 42% of Uruguay's total exports to China. In 2017, Uruguayan exports to China from free zones reached US$802 million, and consisted mainly of cellulose, soya, and beverage

concentrates.

5.64. Meanwhile, China ranked first among Uruguay's suppliers in 2017, accounting for 21% of the country's total imports. Uruguayan imports increased in 2017, reaching US$1.6 billion, 10% higher than the previous year. The main import item was electrical apparatus for line telephony or line telegraphy, of which US$180 million worth were imported in 2017, 11% of total imports.

5.65. Uruguay would like the highlight the Belt and Road Initiative which, in its objective, has

considerable potential to generate diversified growth among the small and medium-sized enterprises, which could benefit from new trade opportunities. In fact, the initiative represents a great opportunity to transform and upgrade traditional industries, to foster infant industries, stimulate innovation, promote development in remote areas, and enhance the competitiveness of small and medium-sized enterprises.

5.66. Uruguay commends the work China has done in this field and encourages it to continue participating in the WTO's informal working group on MSMEs so that we can join forces in working

towards the successful integration of MSMEs into international trade.

5.67. Finally, the delegation of Uruguay reaffirms its interest in continuing to work towards a positive result at the next WTO Ministerial Conference and to protect the multilateral trading system based on predictable, transparent and balanced rules.

5.68. Uruguay wishes China every success with its 7th Trade Policy Review.

JAMAICA

5.69. China and Jamaica share strong historical ties; Chinese immigrants and indentured labourers from as far back as the nineteenth century, have contributed to the enrichment and

development of the Jamaican economy, culture and society as a whole.

5.70. The National and Secretariat reports prepared for China's seventh Trade Policy Review show that China has remained committed to pursuing its unique brand of economic development, characterised, in part, by further opening-up of its economy, strengthening of the rule of law, increased monitoring, checks and balances, foreign direct investment and greater attention to

quality control and sustainability. It is clear that the challenges faced by one of the world's largest economies and its trade policy regime, are many and complex and equally clear that the Chinese Government is unwavering in its determination to address these challenges.

5.71. China is Jamaica's fourth largest trading partner, after the USA, the UK and Canada. Jamaica's main exports to China are alumina and waste and scrap metal. There are also significant exports of coffee, spirits, paperboard and other manufactured goods.

5.72. Recent efforts have been made to increase Jamaica's exports of seafood to China. In

September 2017, a Memorandum of Understanding (MoU) was signed between both countries to facilitate the export of lobster to China. Arising from this MoU, a team of inspectors from China visited Jamaica earlier this year, in order to inspect facilities and tour Jamaican seafood plants, as


- 90 -

part of the final step in the verification process to facilitate market access for the export of Jamaican seafood to China.

5.73. China is also one of Jamaica's key bilateral partners. China continues to provide development assistance in a number of trade- and investment-related projects in Jamaica in the areas of infrastructural development, mining and institutional strengthening, which have helped to fuel Jamaica's social and economic development. China has made significant investment in the

development of Jamaica's infrastructure and agricultural sector. The Jamaica North-South Highway, which was opened in March 2016, is one of the largest investments in infrastructure in Jamaica.

5.74. The Bauxite and Alumina Industry remains one of Jamaica's four largest earners of foreign exchange and the single largest contributor to domestic traditional exports. The industry has been the focus of renewal and expansion, particularly with the entry of Jiuquan Iron and Steel (Group)

Company (JISCO), which has acquired and reopened the Alumina Partners of Jamaica (ALPART) Alumina Refinery, and has proposed further investment with the construction of a new alumina refinery over the next four years.

5.75. The second meeting of the Ministers of Foreign Affairs of the Forum of the Community of Latin America and Caribbean States (CELAC) and the Peoples' Republic China was held in January 2018, at which the Declaration of Santiago and a Joint Action Plan for Cooperation on Priority Areas (2019-2021) were adopted. Both sides committed, inter alia, to undertake measures

to stimulate and deepen trade and investment relations. Importantly, CARICOM and China reaffirmed their commitment to strengthen existing CARICOM-China cooperation mechanisms, including the Caribbean-China Economic and Trade Forum.

5.76. Jamaica looks forward to participating in the China International Import Exposition which will be held in Shanghai in November 2018.

5.77. In closing, Jamaica commends China for its determination to address challenges in its economy and its trade policy regime. We acknowledge China's commitment to development

assistance for other developing countries including LDCs. We encourage the Government of China to continue to pursue various reforms aimed at simplifying trade and rectifying the various imbalances in the economy, for the benefit of the social and economic development of the Chinese people and the global economy, while remaining true to the character of China.

5.78. We wish Vice Minister Wang and the delegation of China a successful seventh Trade Policy Review.

CAMBODIA

5.79. My delegation takes this opportunity to express our congratulations to the Chinese delegation for the good work and successful conclusion of the 7th TPR.

5.80. Chinese 7th review has clearly shown that China has used all efforts to reform trade policies for the main purpose of enhancing compliance with the transparency mechanism. We have listened carefully to 66 Members who most of them expressed their satisfaction and appreciation on China, especially their appreciation on the increase of investments and trade between China and those

countries. I have noted that more than half of those who took the floor on the first day and today have raised the same sentence "China is our key partner" and another sentence "China is the largest economy". These two sentences are revealing as a proof that China is crucial for most of us, both in terms of relation and economy.

5.81. Cambodia also takes this opportunity, once again, to thank the Vice Minister for his precise remarks reflecting comments made by Members and thank the discussant, Ambassador Chambovey, for his insightful comments responded to the results of the review. We also thank the

Chinese delegation for their clear and comprehensive answers to questions.

5.82. We look forward to receiving written responses to our follow-up questions that we have submitted on the first day of the review.


- 91 -

5.83. With this short note, we wish the Chinese delegation led by Vice Minister H.E. Mr. Wang Shouwen a pleasant stay and safe trip back home.

EUROPEAN UNION

5.84. Let me begin by expressing our appreciation to the Chinese delegation for the replies to the EU's advance written questions and for the hard work done in this TPR. Allow me to extend a special thank and best of luck to our colleague, Mr Yu Benlin, who has been working hard on this

TPR and will be leaving Geneva soon.

5.85. As we heard on Wednesday, China received over 1900 questions, 155 of them from the EU. I echo the remark by the discussant that the high numbers speak about China's important role in the global trading system and this Organization. As China's trade policy has an impact on all of us, we are eager to understand it better.

5.86. Today, we would like to share some brief observations on the review so far.

5.87. In its opening statement and the statement today, China emphasized the measures it has taken to liberalize and facilitate trade and investment during the period under review, while refocusing its economic growth on quality rather than quantity, as also noted by the discussant. We heard that China is the main or a major trading partner to most Members in the room and that therefore Members expect China to turn its policy announcements into action soon and effectively. This expectation is shared by foreign businesses in China.

5.88. I listened carefully to the positive evaluation given by China about the improvements made

to its investment and business environment. The question is not about having SOEs and public industrial policies – of course they exist also in the EU. Concerns that were often quoted rather relate to the lack of a "level and fair playing field" when private companies compete with state-owned enterprises and a difficult business environment which persists despite the

liberalization announcements.

5.89. China is an active Member of this Organization and this is positively regarded by the other Members. At the same time, China was encouraged on several occasions to demonstrate

leadership in addressing current challenges facing the WTO. In this context, I would like to highlight the Discussant's reminder that China's size means it must be cognizant of the effect it has on the Members, and the global repercussions of its actions.

5.90. Transparency was also often mentioned by the discussant in the discussion on Wednesday, as Members expect China to fulfil its notification obligations and submit outstanding notifications, notably on domestic support in agriculture, subsidies, STEs and in fisheries subsidies.

5.91. The EU has taken careful note of Vice Minister Wang's announcement that China has submitted its subsidies notification for the 2015-2016 period just before the TPR. We welcome this

news but are concerned that the notification is already 1 year late and would have hoped to receive it earlier so that it could have contributed to our discussions here, as several of our questions address subsidies in China. We trust that the notification is complete and up to date, covering all subsidies granted at central and sub-central level. We look forward to examining it through the review procedures in the special meetings of the Committee on Subsidies and

Countervailing Measures. We trust that in doing so we will find that China has indeed met its notification obligations by providing a comprehensive subsidy notification.

5.92. We hope these observations will be useful to China as it continues on its announced path of further opening-up its economy.

5.93. The EU has submitted a number of follow-up questions to the Secretariat in order to seek additional information and clarifications from China in the following areas, among others:

• Subsidies

• Services • Standards • Energy policy


- 92 -

• China's draft export control law • The Belt and Road initiative • Connected driving

5.94. As per usual practice, we look forward to receiving the replies to these questions within one month after the meeting.

5.95. In concluding, I would like to express once more the EU's appreciation to the whole

delegation of China for their participation and valuable contributions to this 7th Trade Policy Review of China.

PAKISTAN

5.96. We have followed the very important discussion during this TPR with great interest and note

the tremendous progress achieved by China in the past decades in terms of inclusive growth and the alleviation of poverty due to opening-up of its economy. We also note that China has been a

firm, consistent advocate for free trade and the multilateral trading system, opening its markets to the world and fulfilling its obligations under the WTO. We also note some of the Members' concerns with the multilateral system. All of us are cognizant of the reality that the multilateral system needs systemic reform and are participating in tough negotiations to achieve that goal. However, we distance ourselves from the use and advocacy of unilateral measures being utilized by any Member State to achieve their goals since these run counter to the fundamental principles of the WTO.

5.97. While legitimate criticisms of our rule-making history and present negotiations surrounding issues such as industrial policy, SOEs and subsidies warrant us to have a hard look at the framework we've created to achieve our goals of inclusive prosperity, we would like to highlight a systemic concern and our alarm at the direction of certain conversations taking place at this forum. We need to appreciate that a restructuring of the rules might, to put it proverbially, shift

the goal post or burn the bridges for countries at a lower stage of development at the moment. This would be very detrimental to the system and unfair to many countries which have faithfully

executed their obligations under the multilateral trading system with the knowledge that the rules applicable to them will remain the same while they participate in the system as those that existed for countries that were in their position a few decades ago. We need to avoid such a scenario and ensure that all countries retain a fair level of policy space in order to leverage their domestic policies for inclusive growth and prosperity.

5.98. It is disappointing to note that developed countries – once the champions of multilateralism

and its enshrined principles are now sceptical of the rules they stood for.

5.99. The calls for abandoning legitimate policy objectives, relinquishing development goals, surrendering the pursuit of technology, industrial upgradation and building productive capacities, only denies developing countries their right to make lives better for their people. It amounts to

kicking away the development ladder after climbing it; and burning the development bridge after crossing it. It takes away from our Governments the chance to do what Governments are supposed to do – that is make lives better for their people and make countries better for them to

live in.

5.100. The WTO is an institution for all – that is why all countries want to accede and take benefit from it. It allows a chance to all countries to integrate and reform at their own pace and pursue their objectives according to their own peculiar circumstances. Developing countries want to integrate and we are willing to participate. But their need for policy space must be recognized, and their objectives must be supported.

JAPAN

5.101. First of all, I would like to express our sincere appreciation for dedicated efforts made by the Chinese TPR team headed by Vice Minister Wang Shouwen and the excellent comments and

remarks made by the discussant, Ambassador Chambovey.


- 93 -

5.102. During this TPR of China, many questions and requests were put forward by the Members, including on transparency of subsidies, treatment of SOEs, over capacity, cross border data flow, forced technology transfer and IPR. And Vice Minister Wang has just given us some additional explanations. Certainly, this TPR has provided us with an opportunity to better understand each other. But I think many of those issues raised by many Members need to be further clarified or more concretely addressed; we look forward to continuous dialogue with China.

5.103. This morning, the Japanese delegation submitted 27 additional questions on the matters in which we think China's answers are not clear or sufficient. For example, on the Regulations on Technology Import and Export Administration, China's answer says: China "is willing to estimate the amendment of the regulations carefully and comprehensively." We would like to know more exactly what China plans to do with these regulations. We expect China to respond to our questions in due course with more clarity.

UNITED STATES

5.104. Today we would like to make a few observations in light of the discussions that took place on Wednesday and also explain the concerns that underlie some of our more important follow-up questions, which we submitted earlier today.

5.105. As we listened on Wednesday, we heard several Members identify serious problems with China's trade and investment regime. These problems included:

• Severe and persistent excess capacity, especially in the steel, aluminum and shipbuilding

sectors; • Preferential treatment for state-owned enterprises that creates an un-level playing field for foreign companies seeking to compete, not only in China but also in other markets; • An overly broad cybersecurity regime that seems designed to block sales of imported information and communications technology (ICT) products and services in China;

• Overly broad cross-border data restrictions and data localization requirements that work to disadvantage foreign manufacturers and services suppliers and their products and services

in a wide range of sectors; • Forced technology transfer; • Numerous restrictions on foreign investment; • Inadequate regulatory transparency; • China's use of its Anti-Monopoly Law for industrial policy purposes; • Inadequate enforcement of intellectual property rights;

• Problematic sanitary and phytosanitary (SPS) measures; and • A poor record of submitting WTO notifications, especially in the areas of industrial subsidies, agricultural domestic support and fisheries.

5.106. It is, of course, not unusual to see Members identify problems with another Member's trade and investment regime.

5.107. What is unusual is the very long list of problems that have been identified in China's trade and investment regime.

5.108. Why is that?

5.109. We provided the answer on Wednesday. China has not yet fully embraced the open, market-oriented policies on which this institution is founded. China continues to pursue a state-led, mercantilist approach to trade and investment.

5.110. China often describes its approach as win-win, but that's not accurate. A mercantilist sees trade as a zero-sum game, and that is the equation that underlies so many of China's industrial policies. China seeks to help its domestic industries too often by pursuing policies and practices

that impede, disadvantage and harm the foreign competition.

5.111. In the United States' view, as we said on Wednesday, change is necessary, and China knows what needs to be done.


- 94 -

5.112. As we listened to other Members on Wednesday, we heard many of them say that they do not want to hear more promises from China. What they want is to see China taking concrete actions. As one Member said it, "actions speak louder than words". The United States fully supports that sentiment.

5.113. Next, we would like to comment on some of the statements made by China on Wednesday.

5.114. First, China asserts that it faithfully implements adverse WTO dispute settlement rulings.

5.115. We have a different view.

5.116. In DS414, the dispute involving China's antidumping and countervailing duties on imports of U.S. grain-oriented electrical steel, the United States won decisively, with a panel and the Appellate Body both ruling that China should never have put duties in place. China nevertheless

issued a redetermination that kept the duties in place, and the United States was forced to bring a compliance proceeding under Article 21.5 of the DSU. The Article 21.5 panel ruled that China had

not complied with the earlier rulings.

5.117. An almost identical scenario played out in DS427, the dispute in which the United States successfully challenged China's antidumping and countervailing duties on imports of U.S. chicken broiler products.

5.118. Meanwhile, in DS413, the China‒Electronic Payment Services dispute, China agreed to comply with an adverse ruling by July 2013, that is, five years ago. However, China still has not complied, and as a consequence U.S. suppliers of electronic payment services remain blocked from

China's market.

5.119. Another comment by China on Wednesday that requires a response is China's insistence that inadequate IPR enforcement "is no longer a major problem" for U.S. companies' business

operations in China. That statement simply is not true.

5.120. Each year since China joined the WTO, including this year, the United States has catalogued in various reports the enormous difficulties and challenges posed by China's inadequate protection and enforcement of intellectual property rights.

5.121. Moreover, a report released just yesterday by the American Chamber of Commerce in Shanghai ranks inadequate IPR protection as the top regulatory challenge facing U.S. companies in China's market.

5.122. Finally, let me highlight some of our follow-up questions.

5.123. We have asked several follow-up questions about the Belt and Road Initiative. In our original questions, we had highlighted concerns raised by many countries about the need for Belt

and Road projects to begin adhering to internationally accepted best practices in infrastructure development and financing, so as not to cripple countries with unsustainable debt problems, and about inadequate transparency and inclusivity in Belt and Road projects. We sought information about how China was working to address these concerns, but China responded by deflecting responsibility from the Chinese Government and instead asserting that Belt and Road projects are implemented by enterprises and that these enterprises determine how to operate Belt and Road projects, not the Chinese Government. This response is puzzling, given that the Communist Party

of China has included the pursuit of the Belt and Road Initiative in its Constitution and given that Chinese state-owned enterprises and Chinese state-owned banks dominate Belt and Road projects. So, we have asked China for clarification of its response.

5.124. We also have asked some follow-up questions relating to the activities of Communist Party cells in enterprises in China. In our original questions, we had asked about the accuracy of recent reports about an increase in the activities of Communist Party cells in many wholly foreign-owned enterprises, foreign-invested enterprises and Sino-foreign joint ventures in China. We also asked

specifically about the role of Communist Party cells in business management decisions affecting, for example, R&D, investment, hiring and firing personnel, expansion or reduction of manufacturing capacity, etc. in these enterprises. In its response, China did not directly answer


- 95 -

these questions. Instead, it simply asserted that the establishment of Communist Party cells in these enterprises "conforms to the wishes of enterprise employees." So, here, too, we have asked China for clarification of its response.

5.125. Our remaining follow-up questions concern a variety of topics, including familiar topics such as WTO notifications and transparency obligations and emerging issues like China's discriminatory bans and restrictions on imported waste and recovered materials.

5.126. We look forward to China's responses to all of these follow-up questions.

CANADA

5.127. Canada would like to thank China for its engagement and the hard work of its officials throughout this TPR process.

5.128. We hope that the many issues raised by Members over the course of this TPR will be given serious consideration in Beijing and addressed in the near term.

5.129. Canada has submitted several follow-up questions and we are awaiting responses on two of our original questions. So, we look forward to receiving these responses as soon as possible and we would like to wish the delegation from Beijing a safe journey home.

NIGERIA

5.130. We thank you Chair and the Secretariat for your hard work and also for the conduct of the meeting. We also thank His Excellency Vice Minister Wand Shouwen for his response to the priority areas and key issues raised by Members during the first day. We thank China for the prompt

responses to our questions which are under review in our capital. Nevertheless, at the moment,

we are satisfied and we do not have any follow-up questions.

5.131. In addition, we are encouraged to note the commitment of China to assume responsibility befitting of its titles, and also in relation to its capacity given its domestic constraint. We also note the additional and closing remarks by the discussant, more importantly we call for China to lead by example.

5.132. We note also the great interest the Review has generated and also as evidenced in the first

day and also today closing where we still have some Members engaging with China and I think that is part of the interactive nature of the Trade Policy Review.

5.133. In the light of the serious challenges facing the multilateral trading system, we appreciate the timely call by China and other WTO Members, including China, to renew their commitment to the basic principle of the WTO, which is open, transparent, inclusive, non-discriminatory and rules-based. More importantly, the collective responsibility of all WTO Members on the need to

safeguard the rule of the WTO-centred multilateral trading system as a fundamental stabilizer in global economic governance and the firm resistance to unilateralism as well as protectionism in order to contribute to the recovery and growth of the world economy, including development and prosperity.

5.134. Finally, we also take note of the commitment by China to take into consideration some of the concluding remarks, including the serious issues of concern raised by Members, and we hope that the concluding remarks by the Chair will also be taken into consideration in the subsequent

Review.

5.135. We congratulate China for a successful review and wish the delegation back to China a safe trip.

AFGHANISTAN

5.136. I am delivering this statement on behalf of my Ambassador who is not in town today.


- 96 -

5.137. On behalf of the Islamic Republic of Afghanistan, I am honoured to participate in the seventh trade policy review of China and would like to welcome China's delegation. China is an important strategic and economic neighbour and partner of Afghanistan and a key player in the global trading system. We highly value the good cooperation between China and our country.

5.138. As per data, in 2017, China was ranked as the third largest import partner and was the top 7th export destination for Afghanistan.

5.139. On behalf of Afghanistan, I wish China a very productive and successful review.

MONGOLIA

5.140. Mongolia thanks the delegation of China led by Vice Minister Wang for the participation in this review process and appreciates their active involvement. We also thank the Secretariat, as

well as Ambassador Chambovey for their hard work.

5.141. Mongolia strongly believes in the continued efforts of China in trade facilitation. We

submitted further clarifications to the replies of China to our questions.

5.142. Mongolia looks forward to receiving adequate and clear responses to our questions, especially concerning the competencies of provinces as concerns imports and exports.

5.143. I wish the delegation of China a safe trip back home.

MR. WANG SHOUWEN (HEAD OF DELEGATION)

5.144. I want to express our deep appreciation to the Secretariat for their very hard work and their very high level of professionalism in making the preparations for these TPR meetings. I also

want to thank you, Chair, Ambassador Laourou, for your very able leadership. And I want to thank

Ambassador Chambovey for steering these lively discussions. Of course, I wish to thank all WTO Members for your questions, comments and support.

5.145. As I promised at the beginning of my remarks this morning, most of your remarks are constructive. Some of them are not acceptable to us but we promise you we will take all those remarks very seriously, and we will provide written replies to all your questions within one month according to the rule.

5.146. This morning, some new questions were raised. I hope I have the sufficient time to address each and every one of them but obviously I am not able to do so. But I am very glad to tell you that all these issues can be dealt within the framework of the WTO.

5.147. I have noticed that many Members have expressed their concern over the current state-of-play of the multilateral trading system. I share your concerns. At the moment, the unilateralism is posing a very serious challenge to the multilateral trading system. But, once again,

I want to assure you that China staunchly supports the multilateral trading system. As President Xi mentioned, "China will make efforts to safeguard the authority and efficacy of the WTO, including the basic values, the core principles of the WTO. Like most favoured nation treatment, national treatment and S&D for developing Members".

5.148. China has every confidence and trust in the WTO, and China will be supportive and committed to the multilateral way for a shared and better future for all of us. Thank you very much.


- 97 -

6 CONCLUDING REMARKS BY THE CHAIRPERSON

6.1. This seventh Trade Policy Review of China has allowed us to take a closer look at the trade and economic policies of China and to deepen our understanding of developments in those policies since its previous Review in 2016. I would like to thank, once again, Vice Minister Wang Shouwen and his delegation for their constructive engagement throughout this exercise. I would also like to thank the discussant, Ambassador Chambovey, Permanent Representative of Switzerland at the

WTO, for his insightful and comprehensive remarks; and the 70 delegations which have taken the floor for their active participation.

6.2. In their interventions, Members highlighted the importance of China's contribution to global growth over recent years and noted that the pace of its economic expansion has been moderating recently, prompting the authorities to rebalance growth by focusing on quality and sustainability rather than quantity.

6.3. Members generally expressed appreciation for China's active role in the WTO. China being the world's biggest merchandise trader and one of the largest recipients of FDI, its policies have a direct impact on the global economy. Hence, Members called upon China to assume the increased responsibility linked with being a major player in the multilateral trading system. Members also appreciated China's contribution to ongoing discussions on recent initiatives, such as e-commerce, MSME, and investment facilitation for development. Members also noted China's further involvement in regional trade agreements.

6.4. Members commended China on its recent reform initiatives aimed at broadening market access and investment opportunities, the greater involvement of the private sector in the economy, and its commitment to fossil fuel subsidy reform. Members appreciated China's ongoing reform of customs procedures, such as further use of single windows, and commitments in the Trade Facilitation Agreement. Regarding the TFA, Members encouraged China to implement all its category B commitments within the specified transition period. Several Members commended

China on the Belt and Road Initiative and viewed it as an avenue for mutual cooperation and

growth; some invited China to follow international best practices and adhere to a level-playing field for trade and investment opportunities for all. Members also commended China's recent announcements of liberalization in financial services and tariff reductions in the automobile sector. China was congratulated for providing far-ranging preferences to products from LDCs. Many Members expressed appreciation for China's support and assistance to developing countries in areas such as Aid for Trade.

6.5. While many Members appreciated China's continued liberalization of its foreign investment regime, they also encouraged China to further enhance access conditions for foreign investors. In this respect, concerns were raised regarding joint venture requirements, and also with regards to what some perceived as being inconsistent and unpredictable regulatory practices and technology transfer requirements.

6.6. In their interventions many Members expressed serious concerns about the preponderant role

of the State in general, and of state-owned enterprises in particular. Some Members felt that State

influence in China's economy has increased in various sectors. Many Members were of the view that China would require a more market-oriented approach to investment and resource allocation.

6.7. Members raised questions about China's support and subsidy policies and local content requirements, including those that may be part of the 2025 plan. Some Members noted the importance of enforcing competition policy, particularly in view of the recent amendment to the Anti-Unfair Competition Law. Members looked forward to China's early accession to the Agreement on Government Procurement, while several Members also noted continuous issues in China's IPR

regime and encouraged continued IPR protection and enforcement. Some Members called for more predictability regarding market price support and public stockpiling measures used for certain agricultural products. Other areas of concern raised by Members included: administrative licensing and approval process, inconsistency in certain sanitary and phytosanitary measures, restrictions on certain agricultural products, cross-border data restriction and data localization requirements,

the scope and impact of China's cybersecurity legislation and restriction of Virtual Private Network

services, restrictive measures in certain services sectors such as tourism, and industrial policies in certain manufacturing sectors, including the production of new energy vehicles. Several Members


- 98 -

also referred to what they perceived to be market-distorting policies resulting in excess capacity in some sectors, such as steel and semi-conductors. China was called upon to help address global overcapacity in these sectors.

6.8. As in the previous Review, China was encouraged to increase transparency of its trade policy regime. Members highlighted the importance of fulfilling all WTO commitments, in particular the notification obligations concerning, for example, subsidies (including those on fisheries),

agricultural support, and state-trading enterprises. In this regard, Members welcomed the statement by China's representative regarding the recent submission of China's subsidy notification. Members encouraged China to publish all laws, regulations and other measures related to trade, and to make them available in one of the WTO official languages. In this context, Members hoped that sufficient time would be given for comments before the introduction of new regulations.

6.9. China has received more than 1,900 advance written questions, and has already responded to most of them. This TPR will be successfully concluded in a month's time, when China replies to all outstanding questions. I am confident that China has taken good note, not only of the well-deserved praise that it received during this meeting, but also of the critical comments that emerged in the course of this TPR. I hope that China will find Members' comments useful and constructive in its pursuit of economic and trade reforms.

__________

wt/tpr/m/375 - documents online home page

Documents