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CHINA- EU INVESTMENT AGREEMENT
NEGOTIATIONS - SCHEDULES OF CHINA
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ANNEX I
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Annex I
Explanatory Notes
1. The Schedule of China to this Annex sets out, pursuant to Articles 7
(Non-Conforming Measures and Exceptions), China’s existing measures that are not
subject to some or all of the obligations imposed by:
(a) Article 4 (National Treatment);
(b) Article 5 (Most-Favored-Nation Treatment);
(c) Article 3 (Performance Requirements); or
(d) Article 6 (Senior Management and Boards of Directors).
2. Each Schedule entry sets out the following elements:
(a) Sector refers to the sector for which the entry is made;
(b) Obligations Concerned specifies the article(s) referred to in paragraph 1
that, pursuant to Articles 7.1 (a) (Non-Conforming Measures and
Exceptions), do not apply to the non-conforming aspects of the Measures or
the Description, as set out in paragraph 3;
(c) Level of Government indicates the level of government maintaining the
scheduled measure(s);
(d) Measures1 identifies the laws, regulations, or other measures for which the
entry is made. A measure cited in the Measures element:
(i) means the measure as amended, continued or renewed as of the date
of entry into force of this Agreement; and
(ii) includes any subordinate measure adopted or maintained under the
authority of and consistent with the measure; and
(e) Description sets out the non-conforming aspects of the measure for which
the entry is made.
3. In accordance with Article 7.1(a) (Non-Conforming Measures and Exceptions),
and subject to Article 7.1(c) (Non-Conforming Measures and Exceptions), the articles
of this Agreement specified in the Obligations Concerned element of an entry do not
apply to the law, regulation, or other measure, as applicable, identified in the
Measures element of that entry, or the non-conforming aspects of the Description
element.
1 For greater certainty, in the case of China, a change in the level of government at which a measure is administered or enforced does not, by itself, decrease the conformity of the measure
with the obligations referred to in Article 7.1.
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4. In the interpretation of a Schedule entry, all elements of the entry shall be
considered. The Measures element shall prevail over all other elements, unless
otherwise explicitly indicated in the entry, or where a discrepancy between the
Measures element and the other elements considered in their totality is so substantial
and material that it would be unreasonable to conclude that the Measures element
prevails, in which case the other elements prevail to the extent of that discrepancy.
5. Where there is overlap between the contents of this Annex and Annex II,
notwithstanding the obligations a Party assumes under Article 7.1 and this Annex, the
Party remains entitled to adopt or maintain relevant measures in accordance with
Article 7.2 and Annex II.
6. For the purposes of the Schedules of China to this Annex:
(a) “foreign investor” means any investor of the other Party or a non-Party.
(b) “foreign investor may not invest” means a foreign investor may not
directly or indirectly invest, including by holding any shares, stock or other
forms of rights or interest directly or indirectly, in the territory of China.
(c) “Chinese control” means the circumstances where the total investment
proportion held by foreign investors, whether directly and indirectly, is not
greater than 49%.
(d) “proportion of investment” means the aggregate proportion of investment
or equity ratio of an investor and its affiliates in a single enterprise directly
or indirectly.
(e) Where one party has control or common control over the other party or
significantly affects the other party, or two or more parties are controlled by
or under the common control of or are significantly affected by another party,
they shall constitute the “affiliates”.
(f) for greater certainty, a foreign investor and its affiliates are considered to be
one single foreign investor. Foreign investors shall not circumvent any
requirements for foreign investors as set out in a Schedule entry.
(g) “foreign financial institution” means an institution registered outside China
and established upon approval or permission by, and under the supervision
of, the financial regulatory authority of the country or region where it is
located.
7. For greater certainty, with respect to a reservation concerning the supply of a
service, if the means of delivery is not specified or otherwise described or limited, the
reservation shall apply to all means of delivery of the service.
8. For greater certainty, unless otherwise specified in a reservation, the supply of a
service shall not be subject to a reservation merely because it’s supplied through a
particular means of delivery including through public communication networks or the
Internet.
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9. The sectorial exclusion of audio-visual services from the scope of Section II:
investment liberalizaion as provided in Article 1 (Scope of Application) of Section II,
Sub-section I shall prevail over relevant entries in Annex I and Annex II of China’s
negative list. Measures regarding activities covered by the sectorial exclusion of
audio-visual services, if included in Annex I and Annex II of China’s negative list, are
listed solely for transparency purposes.
Negotiators’ Note: Before signature of the Agreement and during the legal scrubbing,
China will update the reference to Special Administrative Measures for Market
Access of Foreign Investment (Negative List) (2019 Edition) in this Schedule in the
light of its latest edition.
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Annex I
SCHEDULE OF CHINA
Annex I Entry 1 – Seed Industry
Sector: Seed Industry
Obligations
Concerned: National Treatment (Article 4)
Level of
Government Central, Local
Measures: Seed Law (2015), Articles 8, 11 and 62;
Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 1, 2, 3.
Description: 1. Foreign investors may not invest in the research and development,
cultivation or planting of the precious and quality varieties which are
rare and special in China, and the production of the relevant
reproductive materials thereof (including the good genes in the
plantation, animal husbandry and fishing industry).
2. Chinese control is required for investments by foreign investors in
the selection and breeding of new varieties of wheat and corn and
seed production of wheat and corn.
3. Foreign investors may not invest in the selection and breeding of
transgenic varieties of crops, livestock and poultry raised for
breeding purpose, seeds and sprouts of aquatic products, and the
production of their transgenic seeds (sprouts).
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Annex I Entry 2 – Fishery
Sector: Fishery
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Fisheries Law (2013);
Law on the Exclusive Economic Zone and the Continental Shelf
(1998), Article 5;
Law on the Territorial Sea and the Contiguous Zone (1992), Article
11.
Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 4.
Description: Foreign investors are not allowed to invest in the fishing of aquatic
products within the sea and inland waters under the jurisdiction of
China.
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Annex I Entry 3 – Exploration and Exploitation of Exclusive Economic Zone and
Continental Shelf
Sector: Exploration and Exploitation of Exclusive Economic Zone and
Continental Shelf
Obligations
Concerned: National Treatment (Article 4)
Level of
Government Central
Measures: Law on the Exclusive Economic Zone and the Continental Shelf
(1998), Article 7.
Description: Any international organization, foreign entity or individual must
obtain approval from Chinese government for carrying out activities
of exploring and exploiting natural resources in the exclusive
economic zone of China or on the Chinese continental shelf, or
drilling on the Chinese continental shelf for any purpose.
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Annex I Entry 4 – Exploration, Exploitation and Smelting of Minerals
Sector: Exploration, Exploitation and Smelting of Minerals
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Notice of the State Council on Classifying Tungsten, Tin, Antimony
and Ion-Type Rare Earth Minerals as Specific Minerals Under
Protective Mining by the State (1991), Article 2;
Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 5.
Description: 1. Foreign investors may not invest in the exploration, exploitation or
ore dressing of rare earth.
2. Foreign investors may not invest in the exploration or exploitation
of tungsten.
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Annex I Entry 5 – Printing of Publications
Sector: Printing of Publications
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Regulation on the Administration of Printing Industry (2017), Article
14;
Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 6.
Description: Chinese control is required for investments (excluding those in free
trade pilot zones) by foreign investors in the printing of publications.
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Annex I Entry 6 – Manufacture of Transportation Equipment
Sector: Manufacture of Transportation Equipment
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 9.
Description: 1. For investments by foreign investors in the manufacture of
complete automobiles (passenger cars), shareholding percentage of
the Chinese party shall not be less than 50%.
After 2022, investments by foreign investors in the manufacture of
passenger cars will not be subject to restrictions on shareholding
percentage.
2. One foreign investor may establish less than two (included) equity
joint ventures that manufacture complete automobiles of the same
category (passenger cars) within the territory of China, however,
such limitation of two enterprises does not apply to the circumstance
where the foreign investor acquires other domestic automakers
jointly with the Chinese party to the equity joint venture.
After 2022, China will no longer reserve the non-conforming
measures prescribed in paragraph 2 of this entry.
3. For greater certainty, the measures listed in this entry does not
apply to investments by foreign investors in the manufacture of new
energy automobiles and special purpose automobiles.
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Annex I Entry 7 – Wholesale - Import and Export
Sector: Wholesale - Import and Export
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Foreign Trade Law (2004), Article 11;
Regulation on the Administration over Import and Export of Goods
(2001), Article 45.
Description: The import or export of the following goods into or outside China
are subject to state trading administration, and Chinese government
reserves the right to determine and announce to public the list of the
enterprises that may engage in the import state trading or export state
trading:
(1) Goods of which the import is subject to state trading
administration refer to the goods listed in Annex 2A1 to the Protocol
on the Accession of the People’s Republic of China (WT/L/432),
excluding vegetable oil;
(2) Goods of which the export is subject to the state trading
administration refer to the goods as listed in Annex 2A2 to the
Protocol on the Accession of the People’s Republic of China
(WT/L/432) and tobacco monopoly products, excluding yarn and
non-bleached yarn.
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Annex I Entry 8 – Government-granted Monopoly
Sector: Government-granted Monopoly
Obligations
Concerned:
National Treatment (Article 4)
Level of
Government: Central
Measures: Law on Tobacco Monopoly (2015), Articles 1, 2 and 3;
Regulation on the Administration of Central Grain Reserves (2016),
Article 8;
Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 13.
Description: 1. Foreign investors may not invest in the production, wholesale,
retail or import and export of leaf tobacco, cigarettes, re-dried leaf
tobacco, cigars, cut tobacco and other tobacco products1.
2. The purchase, sale, storage and rotation etc. of China’s central
grain (oil) reserves are subject to government-authorized operation.
1 For the purpose of this entry, “tobacco products” refer to products entirely or partly made of the leaf tobacco as raw material, which are manufactured to be used for smoking, sucking, chewing or
snuffing.
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Annex I Entry 9 – Air Transportation1
Sector: Air Transportation
Obligations
Concerned:
National Treatment (Article 4)
Senior Management and Boards of Directors (Article 6)
Level of
Government: Central
Measures: Civil Aviation Law (1996), Article 7, 177;
Regulations on the Control of General Aviation Flight(2003), Article
14;
Special Administrative Measures for Market Access of Foreign
Investment (Negative List)(2019 Edition), Article 15,16;
Relevant bilateral air services agreements.
Description: 1. Chinese control is required for investments by foreign investors in
public air transportation enterprises, and the proportion of
investment by one single foreign investor (including its affiliated
enterprises) may not exceed 25%. The legal representative of a
public air transportation enterprise must be Chinese citizen. Only
Chinese public air transportation enterprises are allowed to operate
domestic air services (cabotage), and provide international scheduled
and non-scheduled air services as designated Chinese air carriers.
2. Foreign investors may invest in general aviation enterprises only
in the form of joint venture, and Chinese control is required for such
general aviation enterprises, except those specially engaged in the
business of agriculture, forestry and fishery; the legal representative
of a general aviation enterprise must be Chinese citizen. Approval is
required for foreign aircrafts or Chinese aircrafts used by foreigners
to carry out general activation activities within the territory of China.
3. Nationality registration is required for the civil aircraft of an
enterprise established in accordance with the law of the People's
Republic of China. To get a registration, such enterprise, when
engaging in civil aviation industry, shall comply with relevant
1 Paragraphs 1 and 2 of this Entry are included for greater certainty only and do not affect the
scope of the Agreement as defined in Article 1 of Section II, Sub-section I.
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regulations on foreign investment in civil aviation. Where a civil
aircraft was leased from abroad, the lessee satisfying aforementioned
requirements may apply for a nationality registration of China for
such aircraft, provided that the original nationality registration of
such aircraft has been cancelled.
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Annex I Entry 10 –Services related to Air Transport
Sector: Services related to Air Transport
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 17, 18.
Description: 1.Foreign investors may not invest in the building or operation of the
air traffic control system; relative Chinese control is required for
investments in the building or operation of civil airports.
For the purpose of this entry, “relative Chinese control” refers to the
circumstance where the aggregate proportion of investment held by
the Chinese parties in a foreign-invested enterprise exceeds the
proportion of investment held by any single foreign investor in such
enterprise.1
2.After one year as from the date of entry into force of this
Agreement, EU investors may invest in computer reservation system
services.
1 Paragraph 1 of this Entry are included for greater certainty only and do not affect the scope of
the Agreement as defined in Article 1 (Scope of Application) of Section II, Sub-section I.
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Annex I Entry 11 – Postal Services
Sector: Postal Services
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Postal Law (2015), Articles 5, 14, 15, 42, 51, 55, 84;
Measures for the Supervision and Administration of Universal Postal
Services (2015), Article 21;
Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 19.
Description: 1. Foreign investors may not invest in postal enterprises1 or operate
postal services2.
2. Foreign investors may not invest in the operation of domestic
express delivery service3 for correspondence4.
1 For the purpose of this entry, “postal enterprise(s)” refer to the China Post Group and its wholly
owned and/or controlled enterprises that provide postal services.
2 For the purpose of this entry, “postal services” refer to postal services supplied by a postal
enterprise, including mail delivery, postal remittance, stamp issuance, issuance of newspapers and
magazines required by the government, post office counter services, P.O. box leasing services, and
poste restante services.
3 For the purpose of this entry, “domestic express delivery service” refers to express delivery
service in which the entire process from the acceptance of mail to delivery occurs within the
territory of China.
4 For the purpose of this entry, “correspondence” refers to letters or postcards. The term “letter”
refers to a sealed information carrier delivered in an envelope to a specific individual or entity according to the name and address indicated thereon, excluding books, newspapers, periodicals,
etc.
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Annex I Entry 12 – Telecommunication Services
Sector: Telecommunication Services
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures1: Regulation on Telecommunications (2016), Article 10;
Provisions for the Administration of Foreign-Invested
Telecommunications Enterprises (2016), Article 6;
Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 20.
Description: 1. Foreign investors may not invest in internet access service
(excluding provision of internet access service to internet end users).
2. In the case of an EU investor investing in internet data center
service (including content delivery network service), the
shareholding percentage of foreign investors may not exceed 50%.
3. In the case of an EU investor investing in international
communication facility service, satellite communication service,
cluster communication service, network access facilities service,
network trusteeship service, domestic communication facilities
service, fixed communication service, cellular mobile
communication service, data communication service or IP telephone
service, the shareholding percentage of foreign investors may not
exceed 49% (the foregoing services may be provided on the basis of
facilities). In the case of an EU investor investing in online data
processing and transaction processing services (E-commerce not
included), domestic internet virtual private network services and
code and protocol conversion services, the shareholding percentage
of foreign investors may not exceed 50%.
1 The level of liberalization of the Description element in this Entry goes beyond that of the
existing measures listed above. Whether China will amend the listed existing measures will not
prevent EU investors from enjoying the more favorable treatment provided in the Description
element when this Agreement comes into effect.
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Annex I Entry 13 – Legal Services
Sector: Legal Services
Obligations
Concerned:
National Treatment (Article 4)
Senior Management and Board of Directors (Article 6)
Level of
Government: Central
Measures: Regulation on the Administration of Representative Offices of
Foreign Law Firms in China (2001), Article 6, 16;
Provisions of the Ministry of Justice for Implementing the Regulation
on the Administration of Representative Offices of Foreign Law
Firms in China (2004);
Measures for the Implementation of National-Uniformed
Qualification Examination of Legal Profession (2018), Article 9;
Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 25.
Description: 1. Foreign investors may not engage in the Chinese legal matters.
2. Foreign nationals may not take the China National-Uniformed
Qualification Examination of Legal Profession, obtain the Chinese
legal practitioner qualification, or become partners of Chinese law
firms.
3. A foreign law firm may enter into China only in the form of a
representative office; the establishment of representative office and
dispatch of representatives by a foreign law firm are subject to the
approval of the administrative department of justice of China.
4. Representative offices of foreign law firms may not employ
lawyers licensed to practice Chinese law, and the supporting
personnel employed by such representative offices may not provide
legal services to any concerned party.
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Annex I Entry 14 – Statistics and Surveys
Sector: Statistics and Surveys
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 26, 27.
Description: 1. Foreign investors may not invest in social survey1.
2. Investments by foreign investors in market survey2 may be made
only in the form of joint venture, of which Chinese control is
required for investments by foreign investors in surveys of television
or broadcast audience ratings.
1 For the purpose of this entry, “social survey” refers to the activity, other than a market survey, of
collecting, compiling and analyzing the relevant information of the society by way of
questionnaire (including paper media, magnetic media and online form), interview, observation or
any other ways, which corresponds to CPC86402 (public opinion polling service) and the content
of “economic and social intelligence service not related to commodities, such as industry analysis,
econometrics model, demographic analysis ,etc.” as set out in CPC86401 in Central Product
Classification (CPC) of the United Nations Statistical Commission.
2 For the purpose of this entry, “market survey” refers to the investigation service designed to
secure information on the prospects and performance of an organization’s products in the market,
including market analysis (of size and other characteristics of a market) and analysis of consumer
attitudes and preferences, which corresponds to CPC86401 (market survey service) in Central
Product Classification (CPC) of the United Nations Statistical Commission, but excluding the content of “economic and social intelligence service not related to commodities, such as industry
analysis, econometrics model, demographic analysis, etc.”
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Annex I Entry 15 – Valuation of State-owned Assets
Sector: Professional Services
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Asset Valuation Law of the People’s Republic of China (2016),
Article 9, 15.
Description: For an asset valuation institution engaging in the valuation of
state-owned assets, more than two thirds of its partners or
shareholders shall be Chinese Public Valuers.
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Annex I Entry 16 – Professional Technical Services
Sector: Professional Technical Services1
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Surveying and Mapping Law of the People’s Republic of China
(2017), Article 8;
Provisional Measures on the Administration of Surveying and
Mapping by Foreign Organizations or Individuals in China (2019),
Article 7;
Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 30.
Description: Foreign investors may not invest in the following businesses:
geodetic survey, hydro graphic survey, aerial photography for
mapping, ground moving survey, administrative boundary survey;
compilation of topographic maps, world political maps, national
administrative district maps, provincial or lower administrative
district maps, national teaching maps, local teaching maps, true
three-dimensional maps and digital navigation maps; regional
geological mapping, mineral geology, geophysics, geochemistry,
hydrogeology, environmental geology, geological disasters or remote
sensing geology.
1 For greater certainty, measures set out in this entry shall not prejudice the liberalization
commitments reflected in other entries of this Annex I in respect of exploration of minerals.
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Annex I Entry 17 – Education
Sector: Education
Obligations
Concerned:
National Treatment (Article 4)
Senior Management and Boards of Directors (Article 6)
Level of
Government: Central
Measures: Regulation of the People's Republic of China on Sino-foreign
Cooperatively-run Educational Institutions (2013), Article 6, 7, 21,
23, 25, 62;
Regulation on Religious Affairs (2017), Article 11;
Regulation on the Administration of Religious Activities Conducted
by Foreigners within China (1994), Article 8;
Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 31, 32.
Description: 1. Foreign investors which invest in schools or other educational
institutions providing education or services mainly targeted at
Chinese citizens (occupational skill training not subject to the
statutory length of schooling not included) shall be foreign
educational institutions, and such investment shall be made only in
the form of Sino-foreign cooperative educational institutions,
established in cooperation with Chinese educational institutions.
Educational institutions established in the form of Sino-foreign
cooperative educational institutions may not provide religious
education or carry out religious activities.
2. Foreign religious organizations, foreign religious institutions,
foreign religious colleges or schools, or religious teaching personnel
may not invest in educational institutions. Foreign investors may not
invest in religious educational institutions within the territory of
China.
3. General senior high schools, higher education institutions and
pre-school education institutions established in the form of
Sino-foreign cooperative educational institutions require the Chinese
party to be in the leading position, which means the president or the
principal administrator of a Sino-foreign cooperatively-run
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educational institution must be a person with Chinese nationality and
domicile in the territory of China; the board of trustees, board of
directors or the joint management committee shall consist of no less
than half of the members from the Chinese party.
4. Foreign investors may not invest in educational accreditation
services; foreign investors may not invest in self-sponsored study
abroad intermediary services; foreign investors may not invest in
educational testing services, provided that, upon approval of Chinese
government, foreign investors may engage in educational testing
services in the form of cooperation with institutions designated by
Chinese government.
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Annex I Entry 18 – Medicine
Sector: Medicine
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures1: Provisional Measures on the Administration of Sino-foreign Joint
Venture Medical Institutions (2000), Article 8;
Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 33.
Description: 1. Investments by foreign investors in medical institutions may be
made only in the form of joint venture. EU Investors are permitted to
establish wholly foreign owned privately funded hospitals and
clinics, excluding Traditional Chinese Medicine hospitals and
clinics, in Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou,
Guangzhou, Shenzhen and the whole island of Hainan.
The majority of doctors and medical personnel of the joint venture
and wholly foreign owned hospital and clinics shall be of Chinese
nationality.
2. Foreign investors may not invest in the development and
application of human stem cells, or the development and application
of genetic diagnosis or treatment technology2.3
1 The level of liberalization of the Description element in this Entry goes beyond that of the
existing measures listed above. Whether China will amend the listed existing measures will not
prevent EU investors from enjoying the more favorable treatment provided in the Description
element when this Agreement comes into effect. 2 For greater certainty, this entry does not prevent foreign-invested medical institutions from
using approved human stem cell products and genetic diagnosis or treatment technology that has
been approved for clinical application.
3 After the promulgation of China's regulations on the development and application of
biotechnology, the two Parties will review this paragraph.
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Annex I Entry 19 – Protection of Biological Resources
Sector: Protection of Biological Resources
Obligations
Concerned:
National Treatment (Article 4)
Performance Requirements (Article 3)
Existing
Measures:
Biosecurity Law (2020), Article 59;
Wild Animals Protection Law (Amended in 2018), Articles 27, 40
and 48;
Animal Husbandry Law (Amended in 2015), Articles 16 and 17;
Grassland Law (Amended in 2013), Articles 44 and 49;
Seed Law (Amended in 2015), Articles 8, 10 and 11;
Fisheries Law (Amended in 2013), Article 8 and 46;
Regulation on the Protection of Wild Plants (Amended in 2017),
Article 16, 20, and 21;
Administrative Regulation of Human Genetic Resources (2019),
Article 7, 21, 22, 24.
Description: China requires approval of the research and development activities
conducted by foreign-invested enterprises utilizing the biological
resources1 (including human, animal, plant and microbe resources)
originated from, and protected by China. China also requires the
foreign-invested enterprises to conduct the aforesaid activities in the
form of cooperation with Chinese institutions, and to share with its
Chinese partners the benefits generated from such research and
development as well as subsequent applications and
commercialization.
1 For the purpose of this entry, biological resources includes genetic resources, organisms or parts
thereof, populations, or any other biotic component of ecosystems with actual or potential use or
value for humanity.
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Annex I Entry 20 – Press
Sector: Press
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Regulations on News Coverage by Resident Offices of Foreign
News Agencies and Foreign Correspondents (2008), Article 6;
Decision of the State Council on the Amendment of the Decision
of the State Council on Applying Administrative Licensing to the
Items Necessary for Reserving Administrative Approval (2009),
Article 3;
Provisions for the Administration of Foreign-Invested
Telecommunications Enterprises (2016), Article 6;
Provisions for the Administration of Internet Press Information
Services (2017), Article 7;
Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 21, 34.
Description: 1. 1. Foreign investors may not invest in news service, including but
not limited to, news service provided through news agencies,
newspapers, periodicals, radio stations and television stations,
except that:
a. (1) subject to the approval of the Chinese government, foreign
news institutions may establish resident news offices in China
which could only conduct news interview, and may dispatch
resident journalists to China1;
b. (2) subject to the approval of the Chinese government and under
the condition that the leading position of the Chinese parties is
secured, Chinese and foreign news institutions may cooperate in
particular businesses.
2. 2. Foreign investors may not invest in Internet news information
service2 or Internet public information posting service1.
1 For greater certainty, the establishment of representative offices in China by newspapers or
periodicals, which only engage in news services, is subject to this subparagraph.
2 For greater certainty, “Internet news information” includes reports and commentaries on social
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3. 3. For investments by foreign investors in the internet information
searching services (information searching within a single website
not included), the shareholding percentage of the foreign
investors shall be no more than 50%.
4. 4. Subject to the approval of the Chinese government, foreign
news agencies may provide news service that is specifically
approved into the territory of China, such as the provision of
feeds to domestic news agencies.
and public affairs such as political, economic, military and foreign affairs, as well as reports and
commentaries on social emergency events. “Internet news information service” includes services
in respect of internet news information collection, editing, posting, reposting, and services in
respect of transmission platform, which are provided to the public through internet websites,
application programs, BBS, blogs, microblogs, public Wechat accounts, instant communication
tools, live internet broadcast, etc.
1 For greater certainty, “Internet public information posting service” refers to services that mainly
provide facilities through establishing BBS, blogs, microblogs and other information exchange
platforms to users for the posting of information to the general public.
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Annex I Entry 21 – Publication
Sector: Publication
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Provisions for the Administration of Network Publication Services
(2016), Article 10;
Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 35.
Description: 1. 1. Foreign investors may not invest in services with respect to the
editing, publication and production of books, newspapers,
periodicals, audio and video products and electronic publication;
nor may they invest in network publication service1.
Notwithstanding the previous sentence, subject to the approval of
the Chinese government, Sino-foreign press and publication
cooperation projects may be conducted by Chinese and foreign
publishers, provided that the operation leading position and the
right of final approval of the contents of the Chinese party are
secured, and other conditions attached by the Chinese government
in the approval are satisfied.
2. 2. Foreign newspapers, periodicals, publishing institutions of
books, audio and video products, electronic publications, etc. may
not establish any representative office without the approval of the
Chinese government. A representative office may only engage in
contact, communication, consultancy and reception services.
1 For greater certainty, “network publication service” refers to services that provide network
publications to the general public through information networks. Network publications refer to
digital products that have the characteristics of publishing, such as editing, production, processing,
etc., and that are provided to the public through information networks.
Without Prejudice
30
Annex I Entry 22 – Radio and Television
Sector: Radio and Television
Obligations
Concerned:
National Treatment (Article 4)
Performance Requirements (Article 3)
Level of
Government: Central
Measures: Regulation on the Administration of Radio and Television (2017),
Article 10, 17, 23, 39, 40, 41;
Regulation on the Administration of Ground Receiving Facilities of
Satellite Television Broadcasting (2018), Article 3, 4;
Provisional Measures on the Installation Services for Ground
Receiving Facilities of Satellite Television Broadcasting (2015),
Article 15;
Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 36, 37.
Description: 1. 1. Foreign investors may not invest in radio and television
broadcasting and transmitting services1.
2. 2. Foreign investors may not invest in the manufacture of ground
reception facilities for satellite television and broadcast and key
components thereof, and the installation services for ground
receiving facilities of satellite television broadcasts.
3. 3. Foreign investors may not invest in the production and operation
business of radio and television programs2, except that Chinese and
foreign enterprises may cooperate in the production of television
series (including television animations) subject to the approval of the
Chinese government.
1 For greater certainty, “radio and television broadcasting and transmitting services” includes
establishing and operating radio and television stations at each level, radio and television
frequencies, channels and programs in a time slot, and networks for radio and television
transmission and coverage (radio and television transmitting stations, rebroadcasting stations
(including transposer stations and relay stations), satellite radio and television integration
platforms, satellites, satellite up-link earth stations, satellite receiving stations, radio and television
microwave stations, broadcasting monitoring stations that are used for broadcasting radio and
television programs, and cable radio and television transmission and coverage networks, etc.), and
radio and television audio-and-video-on-demand businesses provided via radio and television
transmission coverage network.
2 For greater certainty, “production and operation business of radio and television programs”
includes the production, introduction and purchase of radio and television programs.
Without Prejudice
31
4. 4. The broadcasting of overseas radio and television programs
introduced into China is subject to the time percentages and time slot
arrangements prescribed by the Chinese government: ① The
programming hours for overseas films and television series
broadcasted by each television channel each day may not exceed
25% of the total programming hours for films and television series
broadcasted by that channel on that day; the programming hours for
other overseas television programs each day may not be more than
15% of the total programming hours of that channel on that day. No
overseas films or television series may be broadcasted during prime
time (19:00-22:00) without approval from the State Administration
of Radio and Television. ②Only domestic animations or domestic
animation programs may be broadcasted by each animation channel
during 17:00-22:00 each day. Animation channels, children’s
channels, channels for children and young adults, kids channels and
other channels targeting at juveniles must implement the
administrative rule that the proportion of programming hours for
domestic animations and for introduced animations each day may
not be less than 7:3. ③Introduction of overseas documentary is
subject to total quantity control. At the present stage, television
broadcasting institutions at all levels shall comply with the rule on a
daily basis that the proportion of programming hours for domestic
documentaries and for imported documentaries may not be less than
7:3. ④The majority of the programs for radio and television
video-on-demand must be domestic programs.
5. 5. The landing of overseas satellite channels is subject to the
approval of the Chinese government.
6. 6. Overseas radio, television and other mass media institutions may
not establish any agency or editors office in China. No representative
office may be established without the approval of the Chinese
government.
Without Prejudice
32
Annex I Entry 23 – Film
Sector: Film
Obligations
Concerned:
National Treatment (Article 4)
Performance Requirements (Article 3)
Level of
Government: Central
Measures: Law of the People's Republic of China on the Promotion of the Film
Industry (2017), Article 29;
Regulation on the Administration of Movies (2002), Article 5, 30, 44;
Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 38.
Description: 1. 1. Foreign investors may not invest in film production and
distribution companies, except that subject to the approval of the
Chinese government, the Chinese government permits and
encourages the cooperation between Chinese and foreign enterprises
in film production.
2. 2. Foreign investors may not invest in cinema companies and the
introduction of overseas films.
3. 3. The exhibition of films by all cinemas in China shall conform to
the time proportion prescribed by the Chinese government for the
exhibition of domestic and imported films, i.e. the time for domestic
films exhibited by domestic cinemas each year may not be less than
two thirds of the aggregate time for exhibition of all films in that
year.
Without Prejudice
33
Annex I Entry 24 – Culture and Recreation
Sector: Culture and Recreation
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Administrative Regulation on Commercial Performances (2016),
Article 10;
Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 40;
Special Administrative Measures for Market Access of Foreign
Investment in Pilot Free Trade Zone (Negative List) (2019
Edition), Article 37.
Description: Foreign investors may not invest in any performing art groups. In
free trade pilot zones, Chinese control is required for investments
by foreign investors in performing art groups.
Without Prejudice
34
Annex I Entry 25 – Network Audio-Visual Service, Internet Culture Operation
Sector: Network Audio-Visual Service, Internet Culture Operation
(Excluding Network Music)
Obligations
Concerned:
National Treatment (Article 4)
Performance Requirements (Article 3)
Level of
Government: Central
Measures: Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 21.
Description: 1. 1. Foreign investors may not invest in network audio-visual
services1.
2. 2. Foreign investors may not invest in the operation of internet
culture (excluding network music).
3. 3. The yearly aggregate volume of overseas films and television
series introduced to be exclusively used for information network
shall not exceed 30% of the aggregate volume of domestically
produced films and television series used for information network
in the previous year.
1 For the purpose of this entry: “network audio-visual services” refers to the provision of
audio-visual services through information network. “information network” refers to information
transmission carrier which uses the Internet Protocol (IP) as the main technical approach and
various electronic equipment including computer, television and mobile phone as the receiving
terminal, including mobile communication network, fixed communication network, microwave
communication network, cable television network, satellite or other metropolitan area network,
WAN, LAN, etc.
Without Prejudice
35
Annex I Entry 26 – Atomic Energy
Sector: Atomic Energy
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Regulation of the People's Republic of China on the Control over
Nuclear Exports (2006), Article 2, 6;
Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Article 5, 7, 11.
Description: 1. Chinese control is required for investment by foreign investors
in building or operation of nuclear power stations.
2. Foreign investors may not invest in the exploration, mining,
purification, transformation, isotope separation, or engage in
nuclear export businesses for materials and items listed in the
Nuclear Export Control List.
Without Prejudice
36
Annex I Entry 27 – Banks
Sector: Financial Services
Sub-Sector: Banks
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Regulation of People’s Republic of China on the Administration of
Foreign-Invested Banks (2019), Article 10, 11, 31, 44;
Detailed Rules on Implementing the Regulation of People’s
Republic of China on the Administration of Foreign-Invested
Banks (2019), Article 58;
Measures of China Banking and Insurance Regulatory
Commission for Implementing Administrative Licensing Matters
for Chinese-Invested Commercial Banks (2018), Article 8;
Measures of China Banking and Insurance Regulatory
Commission for Implementing Administrative Licensing Matters
of Small and Medium-Sized Rural Banking Institutions (2019),
Article 8, 23, 27.
Description: 1. Foreign investors investing in a bank shall be foreign financial
institutions. In cases where foreign investors obtain controlling
interests in a wholly foreign-owned bank or in a Sino-foreign
equity joint venture bank or where foreign investors investing in a
rural commercial bank, rural cooperative bank, rural credit
cooperative, or village bank shall be foreign commercial banks1.
Foreign investors may not invest in private banks.
2. A foreign bank’s branch may not engage in bank card business;
a foreign bank’s branch shall hold a certain proportion of
interest-bearing assets in accordance with the provisions of the
banking regulatory authority of the State Council; a foreign
bank’s branch may not conduct RMB business for Chinese
1 For the purpose of this entry, a “foreign commercial bank” refers to a financial institution that is
registered outside China and may accept public deposit, participate in deposit insurance and
subject to capital supervision upon the approval or permission of the financial regulatory authority
of the country or region where it is located.
Without Prejudice
37
citizens in the territory of China, except for the term deposits with
each in an amount of no less than RMB 500,000.
For greater certainty, a foreign investor who cumulatively
acquires no more than 5% of the shares of a bank solely through
securities transactions in domestic and overseas secondary
markets shall not be subject to the restrictions set forth in
paragraphs 1 of this Entry.
Without Prejudice
38
Annex I Entry 28 – Securities Company
Sector: Financial Services
Sub-Sector: Securities Company1
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Measures for the Administration of Foreign-invested Securities
Companies (2018), Article 6, 21.
Description: Foreign investors investing in securities companies shall be foreign
financial institutions.
For greater certainty, a foreign investor who cumulatively acquires
no more than 5% of the shares of a securities company solely
through securities transactions in domestic and overseas secondary
markets shall not be subject to the restrictions set forth in paragraph
2 of this Entry.
1 Requirements for assets scale, operation term and credit record by Chinese government on
foreign investors investing in securities and futures business institution are based on prudential
supervision, and do not violate the obligations under this Agreement.
Without Prejudice
39
Annex I Entry 29 – Securities Investment Fund Management Company
Sector: Financial Services
Sub-Sector: Securities Investment Fund Management Company1
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Official Reply of the State Council on the Issues Relating to the
Administration of Fund Management Companies Raising
Publicly-offered Funds (2013), Article 3;
Measures for the Administration of Securities Investment Fund
Management Companies (2012), Article 9.
Description: Foreign investors investing in securities investment fund
management companies (public and private) shall be foreign
financial institutions.
1 For the purpose of this Entry, “securities investment fund management companies” means
financial institutions established within the territory of China upon approval of China securities
regulatory institution and in accordance with the Securities Investment Fund Law of the People’s
Republic of China and the Company Law of the People’s Republic of China and engaging in the
management of publicly offered securities investment fund and other businesses permitted by the
securities regulatory authority of China.
Without Prejudice
40
Annex I Entry 30 – Futures Company
Sector: Financial Services
Sub-Sector: Futures Company1
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Measures for the Administration of Futures Companies (2019),
Article 11, 123.
Description: Foreign investors investing in a futures company with the
proportion of investment of 5% or more shall be foreign financial
institutions.
1 For the purpose of this Entry, a “futures company” means a financial institution established
within the territory of China upon the approval of China securities regulatory institution and in
accordance with the Company Law of the People’s Republic of China and the Regulation on
Futures Transaction Management and carrying out the futures business.
Without Prejudice
41
Annex I Entry 31 – Insurance
Sector: Financial Services
Sub-Sector: Insurance
Obligations
Concerned: National Treatment (Article 4)
Level of
Government:
Central
Measures: Regulation of the People's Republic of China on the
Administration of Foreign-invested Insurance Companies (2019),
Article 8;
Detailed Rules on Implementing the Regulation of the People's
Republic of China on the Administration of Foreign-invested
Insurance Companies (2019), Article 3;
Measures for the Equity Administration of Insurance Companies
(2018), Article 6, 15;
Provisional Measures on the Administration of Insurance Asset
Management Companies (2011), Article 9.
Description: 1. The aggregate shareholding percentage of domestic insurance
companies1 in an insurance asset management company shall be
no less than 75%.
China will not maintain the non-conforming measures listed in
this paragraph within three years from the date of entry into force
of this Agreement.
2. If the proportion of investment of one or more foreign investors
in an insurance company is less than 25%, such one or more
foreign investors shall be foreign financial institutions (except for
those who purchase the stocks of an insurance company at the
securities exchange), and the total assets of each foreign investor
at the end of the preceding year shall be no less than USD 2
billion.
If the proportion of investment of one or more foreign investors
applying for establishing an insurance company is 25% or more,
1 For the purpose of this entry, a “domestic insurance company” means an insurance company or
insurance holding (group) company established upon the approval of China insurance regulatory
institution and legally registered with the legal person status.
Without Prejudice
42
the insurance company invested by such foreign investors is a
foreign-invested insurance company1, and each of the foreign
investors shall meet the following requirements:
(1) it shall be a foreign insurance company;
(2) its total assets shall be no less than USD 5 billion at the
end of the year prior to its application for the establishment.
1 For the purpose of this entry, a “foreign-invested insurance company” means a joint venture
insurance company established by a foreign insurance company and Chinese companies or
enterprises within the territory of China, and the foreign insurance company's subsidiaries or
branches in China.
Without Prejudice
43
Annex I Entry 32 – Banks (Deposit Insurance)
Sector: Financial Services
Sub-Sector: Banks
Obligations
Concerned:
National Treatment (Article 4)
Most-Favored-Nation Treatment (Article 5)
Level of
Government: Central
Measures: Regulation on Deposit Insurance (2015), Article 2.
Description: The branches established by foreign banks in the territory of the
People’s Republic of China shall not participate in the deposit
insurance and are not covered by the deposit insurance scheme,
unless otherwise provided for by the arrangements between China
and other countries or regions with regard to the deposit insurance
system.
Without Prejudice
44
Annex I Entry 33 – Financial Assets Management Company
Sector: Financial Services
Sub-Sector: Financial Assets Management Company1
Obligations
Concerned: National Treatment (Article 4)
Level of
Government:
Central
Measures: Regulation on Financial Asset Management Companies (2000),
Article 2;
Measures of the China Banking and Insurance Regulatory
Commission on Implementing Administrative Licensing Matters of
Non-banking Financial Institutions (2018), Article 114, 116.
Description: Foreign investors investing in an existing financial assets
management company shall be foreign financial institutions, and the
total assets of a foreign investor investing in an existing financial
assets management company shall be no less than USD 10 billion by
the end of the year prior to its application.
For greater certainty, a foreign investor who cumulatively acquires
no more than 5% of the shares of a financial assets management
company solely through securities transactions in domestic and
overseas secondary markets shall not be subject to the restrictions set
forth in this Entry.
1 For the purpose of this entry, a “financial assets management company” means a financial
institution mainly engaging in the purchase, management and disposal of non-performing assets.
As at the entry into force of this Agreement, the financial assets management companies that are
already established refer to China Huarong Asset Management Co., Ltd., China Great Wall Asset
Management Corporation, China Oriental Asset Management Corporation, and China Cinda Asset
Management Co., Ltd.
Without Prejudice
45
Annex I Entry 34 – Other Banking Financial Institutions
Sector: Financial Services
Sub-Sector: Other Banking Financial Institutions
Obligations
Concerned: National Treatment (Article 4)
Level of
Government:
Central
Measures: Measures of the China Banking Regulatory Commission for
Implementing Administrative Licensing Matters of Trust Companies
(2015), Article 6, 21;
Measures of the China Banking and Insurance Regulatory
Commission for Implementing Administrative Licensing Matters of
Non-banking Financial Institutions (2018), Article 24, 27, 30, 50, 59,
112;
Measures for the Administration of Financial Leasing Companies
(2014), Article 8, 11, 14;
Measures for the Administration of Pilot Programs of Consumer
Finance Companies (2013), Article 7;
Measures for the Administration of Pilot Programs of Currency
Brokerage Companies (2005), Article 7.
Description: 1. A foreign investor investing in a trust company shall be a foreign
financial institution.
2. A foreign investor investing in a financial leasing company1 shall
be a foreign financial institution or foreign financial leasing
company, and the total assets of such foreign investor shall be no
less than USD 1 billion by the end of the year prior to its application,
in the case of foreign financial institution (exclusive of a commercial
bank); and shall be no less than RMB 10 billion in the case of a
foreign financial leasing company.
3. A foreign investor investing in a currency brokerage company
shall be a currency brokerage company, and shall have been engaged
in currency brokerage business for over 20 years and have a global
1 For the purpose of this Entry, a “financial leasing company” means a non-bank financial
institution established with the approval of the China banking regulatory authority and mainly
engaged in financial leasing.
Without Prejudice
46
organization network and an information communications network
as required for engaging in currency brokerage service.
4. A foreign investor investing in a consumer finance company as
main investor1 shall be a foreign financial institution.
5. A foreign investor investing in other banking financial institutions
other than a trust company, financial leasing company, currency
brokerage company, consumer finance company, finance company
and auto finance company shall be a foreign financial institution, and
its total assets shall be no less than USD 1 billion by the end of the
year prior to its application.
For greater certainty, a foreign investor who cumulatively acquires
no more than 5% of the shares of any one of such other banking
financial institutions solely through securities transactions in
domestic and overseas secondary markets shall not be subject to the
restrictions set forth in this Entry.
1 For the purpose of this Entry, “main investor” means an investor in the consumer finance
company with the largest proportion of investment and no less than 30%.
Without Prejudice
47
Annex I Entry 35 – All Sectors
Sector: All Sectors
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Regulation of the People's Republic of China on the
Administration of Foreign Exchange (2008), Article 16, 23;
Notice of the State Administration of Foreign Exchange on
Reforming and Regulating Policies on the Administration over
Foreign Exchange Settlement of Capital Accounts (2016).
Description: After completing the foreign exchange registration for foreign
direct investment, foreign-invested enterprises shall, according to
the nature of the transaction, open designated foreign exchange
accounts under direct investment at the banks directly, including
capital accounts and asset liquidation accounts. Capitals of
foreign-invested enterprises and Renminbi funds gained through
the settlement of foreign exchange shall not be invested directly
or indirectly in securities or wealth management products
(principal-guaranteed products issued by banks not included), or
used for issuance of loans to unrelated enterprises (except as
otherwise explicitly specified in the business scope of the
enterprise), or the construction or purchase of real estate that is
not for self-use (real estate enterprises not included).
Without Prejudice
48
Annex I Entry 36 – All Sectors
Sector: All Sectors
Obligations
Concerned: National Treatment (Article 4)
Level of
Government: Central
Measures: Law of the People’s Republic of China on Sole Proprietorship
Enterprises (1999), Article 47;
Law of the People’s Republic of China on Specialized
Cooperatives of Farmers (2017), Articles 2, 3, 4, 19;
Regulation on Individual Business Entity (2016), Article 2;
Special Administrative Measures for Market Access of Foreign
Investment (Negative List) (2019 Edition), Paragraph 4 of the
Notes.
Description: 1. Foreign investors may not carry out business operations in
China in the forms of individual business entities or individual
sole proprietorship enterprises, or as members of specialized
cooperatives of farmers.
2. Foreign-funded partnership enterprises may not be established
for industries, areas or businesses with the requirement of
“foreign investor may not invest”, “Chinese control”, “relative
Chinese control”, “may invest only in the form of joint venture”,
or industries, areas or businesses subject to certain foreign
investment proportion requirements, as included in the Negative
List of China.
Without Prejudice
49
ANNEX II
Without Prejudice
50
Annex II
Explanatory Notes
1. The Schedule of China to this Annex sets out, pursuant to Article 7
(Non-Conforming Measures and Exceptions), the specific sectors, subsectors, or
activities for which China may maintain existing, or adopt new or more restrictive,
measures that do not conform with obligations imposed by:
(a) Article 4 (National Treatment);
(b) Article 5 (Most-Favored-Nation Treatment);
(c) Article 3 (Performance Requirements); or
(d) Article 6 (Senior Management and Boards of Directors).
2. Each Schedule entry sets out the following elements:
(a) Sector refers to the sector for which the entry is made;
(b) Obligations Concerned specifies the article(s) referred to in paragraph 1
that, pursuant to Article 7.2 (Non-Conforming Measures and Exceptions),
do not apply to the sectors, subsectors, or activities scheduled in the entry;
(c) Description sets out the scope of the sectors, subsectors, or activities
covered by the entry; and
(d) Existing Measures identifies, for transparency purposes, existing
measures that apply to the sectors, subsectors, or activities covered by the
entry.
3. In accordance with Article 7.2 (Non-Conforming Measures and Exceptions), the
articles of this Agreement specified in the Obligations Concerned element of an
entry do not apply to the sectors, subsectors, or activities identified in the Description
element of that entry.
4. For the purposes of the Schedules of China to this Annex, “foreign investor”
means any investor of the other Party or a non-Party.
5. For great certainty, with respect to a reservation concerning the supply of a
service, if the means of delivery is not specified or otherwise described or limited, the
reservation shall apply to all means of delivery of the service.
6. For greater certainty, unless otherwise specified in a reservation, the supply of a
Without Prejudice
51
service shall not be subject to a reservation merely because it’s supplied through a
particular means of delivery including through public communication networks or the
Internet.
7. The sectorial exclusion of audio-visual services from the scope of Section II:
investment liberalizaion as provided in Article 1 (Scope of Application) of Section II,
Sub-section I shall prevail over relevant entries in Annex I and Annex II of China’s
negative list. Measures regarding activities covered by the sectorial exclusion of
audio-visual services , if included in Annex I and Annex II of China’s negative list,
are listed solely for transparency purposes.
Without Prejudice
52
Annex II
SCHEDULE OF CHINA
Annex II Entry 1 – Social Services
Sector: Social Services
Obligations
Concerned:
National Treatment (Article 4)
Most-Favored-Nation Treatment (Article 5)
Performance Requirements (Article 3)
Senior Management and Boards of Directors (Article 6)
Description: China reserves the right to adopt or maintain any measure with
respect to the provision of services established or maintained for
public purposes in the following areas: social insurance1, social
assistance, social welfare2, compulsory education, public culture3
(including the establishment and operation of mass culture
pavilion, library, fine art museum, culture center, and museums,
etc.), and public-funded health institutions.
1 The social insurance system established by China includes Basic Old-Age Insurance, Basic
Medical Insurance, Work Injury Insurance, Unemployment Insurance, and Maternity Insurance.
2 For greater certainty, social welfare includes protection of interests of the group of preferential
treatment, households enjoying the minimum living guarantee, aged people, the disabled and
children.
3 For greater certainty, the reservation with respect to public culture under this entry does not
affect China’s commitments under entries 20-25 in Annex I.
Without Prejudice
53
Annex II Entry 2 – Atomic Energy
Sector: Atomic Energy1
Obligations
Concerned:
National Treatment (Article 4)
Most-Favored-Nation Treatment (Article 5)
Performance Requirements (Article 3)
Senior Management and Boards of Directors (Article 6)
Description: China reserves the right to adopt or maintain any measure with
respect to the storage, transportation and reprocessing of spent
fuels, decommissioning of nuclear facilities and disposal of
radioactive wastes, as well as nuclear import business.
1 For greater certainty, this entry does not apply to investment by foreign investors in the building
or operation of nuclear power stations or in the isotope, radiation and laser technology.
Without Prejudice
54
Annex II Entry 3 – Ethnic Minorities
Sector: Ethnic Minorities1
Obligations
Concerned:
National Treatment (Article 4)
Most-Favored-National Treatment (Article 5)
Performance Requirements (Article 3)
Senior Management and Boards of Directors (Article 6)
Description: China reserves the right to adopt or maintain any measure that
grants rights or preferences to places where ethnic minorities live in
compact communities with the view to balance economic
development and maintain social justice.
1 For the purpose of this entry, “ethnic minorities” refer to 55 non-Han minorities that have less population than Han nationality in 56 ethnic nationalities identified and recognized by the Chinese
central government.
Without Prejudice
55
Annex II Entry 4 – Culture and Related Industries
Sector: Culture and Related Industries
Obligations
Concerned:
National Treatment (Article 4)
Performance Requirements (Article 3)
Senior Management and Board of Directors (Article 6)
Description: In the event where China amends existing measures after entry into
force of this Agreement to permit foreign investors to invest in
businesses or enterprises that are not permitted for foreign
investment as prescribed in Entry 20 – Entry 25 of Annex I, to the
extent that such foreign investment is permitted, China reserves the
right to adopt measures inconsistent with Article 9 (Performance
Requirements) and Article 10 (Senior Management and Board of
Directors) as well as measures with respect to the transfer and
disposition of state-owned assets that are inconsistent with Article 3
(National Treatment)
Without Prejudice
56
Annex II Entry 5 – Chinese Traditional Medicine
Sector: Chinese Traditional Medicine
Obligations
Concerned:
National Treatment (Article 4)
Most-Favored-Nation Treatment (Article 5)
Performance Requirements (Article 3)
Senior Management and Boards of Directors (Article 6)
Description: China reserves the right to adopt or maintain any measure with
respect to the application of processing techniques of Chinese
medicinal decocting pieces including steaming, plain stir-baking,
stir-baking with adjuvant, calcining and the manufacture of
confidential prescription products of Chinese patent medicine.
Without Prejudice
57
Annex II Entry 6 –Water Transportation
Sector: Water Transportation
Obligations
Concerned:
National Treatment (Article 4)
Most-Favored-Nation Treatment (Article 5)
Description: China reserves the right to adopt or maintain any measure with
respect to domestic water transport (including maritime cabotage
transport).1
1 For greater certainty, domestic water transport refers to passenger and freight transport between
the ports or points of China. If vessels of the EU sail from one port of China to another to load
cargo for foreign countries or discharge cargo from abroad, it shall be regarded as a part of the
international maritime transport.
Without Prejudice
58
Annex II Entry 7–Services related to Air Transport
Sector: Services related to Air Transport
Obligations
Concerned: National Treatment (Article 4)
Description: China reserves the right to adopt or maintain any reciprocal measure
with respect to computer reservation system services and ground
handling services.
Without Prejudice
59
Annex II Entry 8 – Protection of Cultural Heritage
Sector: Protection of Cultural Heritage
Obligations
Concerned:
National Treatment (Article 4)
Performance Requirements (Article 3)
Senior Management and Board of Directors (Article 6)
Description: China reserves the right to adopt or maintain any measure with
respect to the protection, repair and restoration of cultural relics and
intangible cultural heritage, including investigation, exploration,
excavation, transfer, collateral, pledge, lease, exploitation and
utilization, etc.
Without Prejudice
60
Annex II Entry 9 – Non-Profit Organizations
Sector: Non-Profit Organizations
Obligations
Concerned:
National Treatment (Article 4)
Senior Management and Board of Directors (Article 6)
Description: China reserves the right to adopt or maintain the following
measures:
Unless approved by the Chinese government: foreign investors and
covered investments may not invest in non-profit organizations
within the territory of China; non-profit organizations established
outside of China may not set up representative offices or branches in
China. To conduct activities temporarily in China, foreign non-profit
organizations shall cooperate with domestic entities, and the term
for such temporary activities shall not exceed one year. The senior
executives of non-profit organizations which have been approved to
be established within the territory of China shall be Chinese
citizens.
Without Prejudice
61
Annex II Entry 10 – Land
Sector: Land
Obligations
Concerned:
National Treatment (Article 4)
Most-Favored-Nation Treatment (Article 5)
Performance Requirements (Article 3)
Senior Management and Boards of Directors (Article 6)
Description: China reserves the right to adopt or maintain any measure with
respect to restricting foreign investors and their investments in the
use or contracted management of agricultural land1.
Existing
Measures:
Land Administration Law(2004), Articles 2, 4, Chapters 2, 4, 5;
Forestry Law(1998), Articles 15, 27;
Grassland Law(2013), Articles 10, 11, 13;
Fisheries Law(2004), Article 11;
Law on the Contracting of Rural Land(2002), Article 33
1 For the purpose of this entry, agricultural land refers to the land directly used for agricultural production, including arable land, forest land, grass land, land for farm and water conservancy,
waters for aquaculture, etc.
Without Prejudice
62
Annex II Entry 11 – Financial Services
Sector: Financial Services
Obligations
Concerned: National Treatment (Article 4)
Description: 1. Investment activities by foreign investors having a nature of
banking services shall be carried out through commercial
presence.
2. China reserves the right to adopt measures with regard to the
borrowing of foreign debts by domestic enterprises and
individuals pursuant to the foreign debt administration regime.
Without Prejudice
63
Annex II Entry 12 – All Sectors
Sector: All Sectors
Obligations
Concerned:
National Treatment (Article 4)
Senior Management and Board of Directors (Article 6)
Description: 1. In the sectors where the EU has reserved a policy space in
relation to the right to limit the amount of equity invested by
foreign investor, or to require nationality or residency for senior
managers and boards of directors, in connection with the transfer
or disposal of state owned assets, which it has not already
reserved under GATS, China may adopt or maintain an equivalent
measure when transferring or disposing of its own state-owned
assets in that same sector, provided that such measure is
consistent with China’s obligations under GATS.
2. Notwithstanding paragraph 1, China, in its admission of foreign
investment, including via mergers and acquisitions as well as
acquisition of controlling shares by an established EU investor,
commits not to restrict the acquisition of state owned assets by
EU investors in the sectors liberalised pursuant to Annexes I to II
beyond the restrictions set out in the relevant reservations.
3. This entry does not apply to the transfer or disposition of assets
which are no longer state-owned assets after their transfer or
disposition.
Without Prejudice
64
Annex II Entry 13 – All Sectors
Sector: All Sectors
Obligations
Concerned: Most-Favored-Nation Treatment (Article 5)
Description: 1. China reserves the right to adopt or maintain any measure that
accords differential treatment to the parties under any bilateral or
multilateral international agreement in force or signed prior to the
date of entry into force of this Agreement.
2. China reserves the right to adopt or maintain any measure that
accords differential treatment to the parties under any existing or
future bilateral or multilateral international agreement which
liberalises service in accordance with Article 5 of GATS or
liberalises investment provided the agreement has substantial
sector coverage in terms of number of sectors, and provides for
the absence or elimination of substantially all discrimination in
the covered sectors either at the entry into force of that agreement
or on the basis of a reasonable time-frame.
3. With respect to the following areas, China reserves the right to
adopt or maintain any measure that accords differential treatment
to the parties under any bilateral or multinational agreement
effected or signed after the date of entry into force of this
Agreement:
(1) Aviation;
(2) Fisheries;
(3) Agriculture, hunting, forestry and logging;
(4) Mining and energy related activities.
Without Prejudice
65
Annex II Entry 14 – All Sectors
Sector: All Sectors
Obligations
Concerned:
National Treatment (Article 4)
Most-Favored-Nation Treatment (Article 5)
Performance Requirements (Article 3)
Senior Management and Board of Directors (Article 6)
Description: China reserves the right to adopt or maintain any measure with
respect to any special arrangement or favorable treatment for any
investor from Hong Kong, Macao and Taiwan as well as any
investment thereof.
Without Prejudice
66
Annex II Entry 15 – All Sectors
Sector: All Sectors
Obligations
Concerned:
National Treatment (Article 4)
Most-Favored-Nation Treatment (Article 5)
Performance Requirements (Article 3)
Senior Management and Boards of Directors (Article 6)
Description: 1. China reserves the right to adopt or maintain any measure
with respect to a new industry.
2. A new industry refers to an economic activity that does not
exist as of the date of entry into force of this Agreement and
that cannot be classified in ISIC Rev.41. For greater certainty,
this reservation does not alter other commitments and
reservations reflected in China’s offer.
3. China shall notify the EU prior to adopting a measure with
respect to a new industry that is inconsistent with the
above-mentioned obligations. At the request of either Party,
the Parties shall enter into negotiations with regard to the
liberalisation commitments for a new industry.
1 ISIC Rev. 4 refers to the fourth version of International Standard Industrial Classification of all
Economic Activities published by Statistical Office of the United Nations in 2008.
Without Prejudice
67
Annex II Entry 16 – All Sectors
Sector: All Sectors
Obligations
Concerned: Performance Requirements (Article 3)
Description: China reserves the right to adopt or maintain any measure with
regard to subsidies for research and development.
Without Prejudice
68
Annex II Entry 17 – Lottery
Sector: Lottery
Obligations
Concerned:
National Treatment (Article 4)
Performance Requirements (Article 3)
Senior Management and Boards of Directors (Article 6)
Description: China reserves the right to adopt or maintain any measure with
respect to the lottery sector.
Without Prejudice
69
Annex III
Without Prejudice
70
Annex III
Schedule of specific commitments and limitations on market access
Schedule of China
Explanatory Notes
1. The Schedule hereof sets out:
(a) in the first column, the sectors or sub-sectors where market
access commitments are undertaken, in accordance with Article
2 of Section II (Liberalisation of Investment – market access).
Economic activities in sectors or sub-sectors covered by this
Agreement and not mentioned in this Schedule are not
committed;
(b) in the second column, the limitations that do not conform with
obligations imposed by Article 2 of Section II (Liberalisation of
Investment – market access).
2. For the purposes of this Schedule:
(a) CPC means Central Product Classification (CPC) numbers as set
out in Statistical Office of the United Nations, Statistical Papers,
Series M, No. 77, Provisional Central Product Classification,
1991;
(b) ICNEA means Industrial Classification for National Economic
Activities (GB/T 4754 – 2017), published on 30 June 2017
jointly by General Administration of Quality Supervision,
Inspection and Quarantine of the People's Republic of China,
and Standardization Administration of the People's Republic of
China.
3. This Schedule does not include measures relating to qualification
Without Prejudice
71
requirements and procedures, technical standards and licensing
requirements and procedures where they do not constitute market
access limitations within the meaning of Article 2 of Section II
(Liberalisation of Investment – market access). Such measures (e.g.
measures requiring to obtain a license, measures regarding universal
service obligations, measures requiring to have recognized
qualifications in regulated sectors, measures requiring to pass
specific examinations, including language examinations, and any
non-discriminatory requirement that certain activities may not be
carried out in protected zones or areas) may apply in any case.
4. For greater certainty, non-discriminatory measures of the following
types do not constitute market access limitations within the meaning
of Article 2 of Section II (Liberalisation of Investment – market
access):
(a) a measure concerning zoning and planning regulations affecting
the development or use of land, or other analogous measures;
(b) a measure requiring the separation of the ownership of
infrastructure from the ownership of the goods or services
provided through that infrastructure to ensure fair competition,
for example in the fields of energy, transportation and
telecommunications;
(c) a measure restricting the concentration of ownership to ensure
fair competition;
(d) a measure seeking to ensure the conservation and protection of
natural resources and the environment, including a limitation
on the availability, number and scope of concessions granted,
and the imposition of a moratorium or ban;
(e) a measure limiting the number of authorisations granted
because of technical or physical constraints, for example
Without Prejudice
72
telecommunications spectrum and frequencies; or
(f) a measure requiring that a certain percentage of the
shareholders, owners, partners, or directors of an enterprise be
qualified or practice a certain profession such as lawyers or
accountants.
5. The sectorial exclusion of audio-visual services from the scope of
Section II: investment liberalizaion as provided in Article 1 (Scope
of Application) of Section II, Sub-section I shall prevail over
relevant commitment in this schedule. Such commitment regarding
activities covered by the sectorial exclusion of audio-visual services,
if included in this schedule, are listed solely for transparency
purposes.
Without Prejudice
73
Sector or sub-sector Limitations on market access
I. HORIZONTAL COMMITMENTS
ALL SECTORS INCLUDED IN
THIS SCHEDULE
Foreign investors may not carry out business
operations in China in the forms of
individual business entities or individual sole
proprietorship enterprises, or as members of
specialized cooperatives of farmers.
Foreign-funded partnership enterprises may
not be established for industries, areas or
businesses with the requirement of “foreign
investor may not invest”, “Chinese control”,
“relative Chinese control”, “may invest only
in the form of joint venture”, or industries,
areas or businesses subject to certain foreign
investment proportion requirements, as
included in the Negative List of China.
The establishment of branches by foreign
enterprises is unbound, unless otherwise
indicated in specific sub-sectors.
Representative offices of foreign enterprises
are permitted to be established in China, but
they shall not engage in any profit-making
activities except for the representative
offices under CPC 861, 862, 863, 865 in the
sectoral specific commitments.
The land in the People's Republic of China is
State-owned. Use of land by enterprises and
individuals is subject to the following
maximum term limitations:
(a) 70 years for residential purposes;
(b) 50 years for industrial purposes;
(c) 50 years for the purpose of education,
science, culture, public health and physical
education;
(d) 40 years for commercial, tourist and
recreational purposes;
(e) 50 years for comprehensive utilization
or other purposes.
Without Prejudice
74
Sector or sub-sector Limitations on market access
II. SPECIFIC COMMITMENTS
1. BUSINESS SERVICES
A. Professional Services
a. Legal Services
(CPC 861, excluding Chinese law
practice)
Foreign law firms can provide legal services
only in the form of representative offices.
Representative offices can engage in
profit-making activities.
Business scope of foreign representative
offices is only as follows:
(a) to provide clients with consultancy on
the legislation of the country/region where
the lawyers of the law firm are permitted to
engage in lawyer's professional work, and on
international conventions and practices;
(b) to handle, when entrusted by clients or
Chinese law firms, legal affairs of the
country/region where the lawyers of the law
firm are permitted to engage in lawyer's
professional work;
(c) to entrust, on behalf of foreign clients,
Chinese law firms to deal with the Chinese
legal affairs;
(d) to enter into contracts to maintain
long-term entrustment relations with Chinese
law firms for legal affairs;
(e) to provide information on the impact of
the Chinese legal environment.
Entrustment allows the foreign
representative office to directly instruct
lawyers in the entrusted Chinese law firm, as
agreed between both parties.
The representatives of a foreign law firm
shall be practitioner lawyers who are
members of the bar or law society in a WTO
member and have practiced for no less than
two years outside of China. The Chief
representative shall be a partner or
equivalent (e.g., member of a law firm of a
limited liability corporation) of a law firm of
a WTO member and have practiced for no
less than three years.
b. Accounting, auditing and
bookkeeping services (CPC 862)
None
Without Prejudice
75
Sector or sub-sector Limitations on market access
c. Taxation services
(CPC 8630)
None
d. Architectural services
(CPC 8671)
e. Engineering services
(CPC 8672)
f. Integrated engineering services
(CPC 8673)
g. Urban planning services (except
general urban planning)
(CPC 8674)
None
h. Medical and dental services
(CPC 9312)
The establishment of hospitals or clinics is
subject to quantitative limitations in line with
China's needs.
i. Veterinary services
(CPC 93201, 93209)
None.
B. Computer and Related Services
a. Consultancy services related to
the installation of computer hardware
(CPC 841)
None
b. Software implementation
services
(CPC 842)
- Systems and software consulting
services (CPC 8421)
- Systems analysis services
(CPC 8422)
- Systems design services
(CPC 8423)
- Programming services
(CPC 8424)
- Systems maintenance services
(CPC 8425)
None
c. Data processing services
(CPC 843)
- Input preparation services
(CPC 8431)
- Data processing and tabulation
services
(CPC 8432)
- Time-sharing services
(CPC 8433)
None
Without Prejudice
76
Sector or sub-sector Limitations on market access
- Other data processing services
(CPC 8439)
d. Data base services
(CPC 844), limited to services
provided from primarily structured
databases through a private
communication network.
None
e. other computer services
(CPC 849)
- Data preparation services
(CPC 84910)
- Other computer services n.e.c.
(CPC 84990), limited to training
services for staff of clients
None
C. Research and Development
Services
a. Research and development
services on natural sciences
(CPC 85101, 85102, 85103,
85104, 85105, 85109)
Unbound for the research and development
services relating to social sciences and
humanities, human stem cells, genetic
diagnosis or treatment technology, and the
research and development services utilizing
the biological resources originated from, and
protected by China. b. Interdisciplinary research and
experimental development services
(CPC 853)
D. Real Estate Services
a. Real estate services involving
own or leased property
(CPC 821)
None
b. Real estate services on a fee or
contract basis
(CPC 822)
None
F. Other Business Services
a. Advertising Services
(CPC871)
None
b. Market research services
(CPC 86401)
Unbound for social survey and economic and
social intelligence services not in connection
with merchandised products, such as industry
analysis, econometric modelling,
demographic analysis, etc.
c. Management Consulting services
(CPC 865)
None
d. Services related to management
consulting
None
Without Prejudice
77
Sector or sub-sector Limitations on market access
(CPC 86601, 86609)
e. Technical testing and analysis
services (CPC 8676) and freight
inspection covered by CPC 749,
excluding statutory inspection
services for freight inspection
services
None
f. Services incidental to agriculture,
forestry, hunting and fishing
(CPC 881, 882)
None
k. Placement and supply services of
Personnel
(CPC 872)
None
m. Related scientific technical
consulting services
(CPC 8675)
None
- Offshore oil-field services
geological, geophysical and other
scientific prospecting services
(CPC 86751)
Sub-surface surveying services
(CPC 86752)
None
- Onshore oil-field services None.
- Surface surveying services (CPC
86753)
- Map - making services (CPC
86754)
None
Unbound for geodetic survey, hydro graphic
survey, aerial photography for mapping,
ground moving survey, administrative
boundary survey; compilation of topographic
maps, world political maps, national
administrative district maps, provincial or
lower administrative district maps, national
teaching maps, local teaching maps, true
three-dimensional maps and digital
navigation maps; regional geological
mapping, mineral geology, geophysics,
geochemistry, hydrogeology, environmental
geology, geological disasters or remote
sensing geology.
p. Photographic services
(CPC 875)
None
q. Packaging services
(CPC 876)
None
Without Prejudice
78
Sector or sub-sector Limitations on market access
s. Convention services
(CPC 87909)
None
t. Translation and interpretation
services
(CPC 87905)
None
u. Credit reporting services
(CPC 87901)
A form of limited liability company or
joint-stock company is required.
v. Telephone answering services
(CPC 87903)
None
- Maintenance and repair services
(CPC 63, 6112 and 6122)
- Maintenance and repair services
of office machinery and equipment
including computers
(CPC 845 and 886)
- Rental and leasing services
(CPC 831, 832, excluding CPC
83202)
None
2. COMMUNICATION SERVICES
B. Courier Services
(CPC 75121, except for those
specifically reserved to Chinese postal
authorities by law as of the date of
China's accession to the WTO)
Registration as a Chinese legal person is
required.
C. Telecommunication Services
a. Fixed communication services None
b. Cellular mobile communication
services
None
c. Satellite communication services None
d. Data communication services None
e. IP telephone services None
f. Cluster communication services None
g. Wireless paging services None
h. Network access facility services None
i. Domestic communication
facilities services
None
j. Network trusteeship services None
k. Internet data center services None
l. Content delivery network services None
m. Domestic Internet virtual private None
Without Prejudice
79
Sector or sub-sector Limitations on market access
network services
n. Internet access services Unbound, except for provision of internet
access service to internet end users
o. Online data processing and
transaction processing services
None
p. Domestic multi-party
communication services
None
q. Store-and-forward services None
r. Call center services None
s. Code and protocol conversion
services
None
D. Audiovisual Services
- Videos, including entertainment
software and
(CPC 83202), distribution
services
- Sound recording distribution
services
None
- Cinema Theatre Services None
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES
(CPC 511, 512, 5131, 514, 515, 516,
517, 5182)
None
1 Including dredging services relating to infrastructure construction. 2 Coverage of CPC 518 is limited only to the rental and leasing services of construction and/or demolition
machines with operator which are owned and used by foreign construction enterprises in their supply of services.
Without Prejudice
80
Sector or sub-sector Limitations on market access
4. DISTRIBUTION SERVICES1
A. Commission Agents’ Services
(excluding salt, tobacco)
B. Wholesale Trade Services
(excluding salt, tobacco)
None
C. Retailing Services (excluding
tobacco)
None
D. Franchising None
E. Wholesale or retail trade services
away from a fixed location.
None
5. EDUCATIONAL SERVICES
(Excluding special education
services e.g. military, police, political
and party school education)
A. Primary education services
(CPC 921, excluding national
compulsory education in CPC 92190)
B. Secondary education services
(CPC 922, excluding national
compulsory education in CPC 92210)
Establishment of joint schools permitted.
1 Distribution trade services are comprised of four main sub-sectors:
commission agents services;
wholesaling;
retailing; and
franchising.
The principal services rendered in each subsector can be characterized as reselling merchandise, accompanied by a
variety of related subordinated services, including inventory management; assembly, sorting and grading of bulk
lots; breaking bulk lots and redistributing into smaller lots; delivery services; refrigeration, storage, warehousing
and garage services; sales promotion, marketing and advertising, installation and after sales services including
maintenance and repair and training services. Distribution services are generally covered by CPC 61, 62, 63 and
8929.
Commission Agents' Services consist of sales on a fee or contract basis by an agent, broker or auctioneer or other
wholesalers of goods/merchandise and related subordinated services.
Wholesaling consist of the sale of goods/merchandise to retailers to industrial, commercial, institutional, or other
professional business users, or to other wholesalers and related subordinated services.
Retailing services consist of the sale of goods/merchandise for personal or household consumption either from a
fixed location (e.g., store, kiosk, etc.) or away from a fixed location and related subordinated services.
Franchising services consist of the sale of the use of a product, trade name or particular business format system in
exchange for fees or royalties. Product and trade name franchising involves the use of a trade name in exchange
for fees or royalties and may include an obligation for exclusive sale of trade name products. Business format
franchising involves the use of an entire business concept in exchange for fees and royalties, and may include the
use of a trade name, business plan, and training materials and related subordinated services.
Without Prejudice
81
Sector or sub-sector Limitations on market access
C. Higher education services
(CPC 923)
D. Adult education services
(CPC 924)
E. Other education services
(CPC 929, including English
language training)
6. ENVIRONMENTAL SERVICES
(excluding environmental quality
monitoring and pollution source
inspection)
A. Sewage Services
(CPC 9401)
B. Solid Waste Disposal Services
(CPC 9402)
C. Cleaning Services of Exhaust
Gases
(CPC 9404)
D. Noise Abatement Services
(CPC 9405)
E. Nature and Landscape Protection
Services
(CPC 9406)
F. Other Environmental Protection
Services
(CPC 9409)
G. Sanitation Services
(CPC 9403)
None
7. FINANCIAL SERVICES
A. All Insurance and
Insurance-Related Services
a. Life insurance
b. Non-life insurance
c. Reinsurance
d. Services auxiliary to insurance
None
e. Insurance intermediation service 1. Insurance brokerage: unless otherwise
provided by insurance regulatory authority of
the State Council, insurance brokers shall
take one of the following forms: (1) limited
liability company; (2) joint-stock company.
2. Insurance loss adjustor: insurance loss
adjustors shall take the form of partnership or
Without Prejudice
82
Sector or sub-sector Limitations on market access
company in accordance with law.
3. Insurance agency: unless otherwise
provided by insurance regulatory authority of
the State Council, professional insurance
agencies shall take one of the following
forms: (1) limited liability company; (2)
joint-stock company.
B. Banking and Other Financial
Services (excluding insurance)
Banking services as listed below:
a. Acceptance of deposits and other
repayable funds from the public;
b. Lending of all types, including
consumer credit, mortgage credit,
factoring and financing of commercial
transaction;
c. Financial leasing
d. All payment and money
transmission services, including
credit, charge and debit cards,
travellers cheques and bankers
drafts(including import and export
settlement);
e. Guarantees and commitments;
f. Trading for own account or for
account of customers: foreign
exchange.
None
h. Money broking None
Motor vehicle financing by non-bank
financial institutions
None
Other financial services as listed
below:
k. Provision and transfer of financial
information, and financial data
processing and related software by
supplier of other financial services;
l. Advisory, intermediation and other
auxiliary financial services on all
activities listed in subparagraphs (a)
through (k), including credit reference
and analysis, investment and portfolio
research and advice, advice on
None
Without Prejudice
83
Sector or sub-sector Limitations on market access
acquisitions and on corporate
restructuring and strategy.
Securities Services1 The establishment of branches by foreign
enterprises is unbound. The shareholder of
the securities company, as well as the
shareholders’ controlling shareholders and
actual controllers may participate in no more
than two securities companies, and may
control no more than one securities company
thereof.
Asset management 1. Trust company: a single investor, its
affiliated parties, and the persons acting in
concert with that investor, may either
participate in no more than two trust
companies, or hold the majority shares of no
more than one trust company, except in the
case of merger, acquisition or restructuring of
a high risk trust company pursuant to
authorization of the banking regulatory
authority of the State Council.
2. Wealth management company: an investor,
its affiliated parties, and the persons acting in
concert with that investor, may either
participate in no more than two commercial
banks’ wealth management subsidiaries, or
control no more than one commercial banks’
wealth management subsidiary.
3. Fund management company: The
establishment of branches by foreign
enterprises in China is unbound. A financial
institution or several financial institutions
controlled by one actual controller may
participate in no more than two fund
management companies, and may control no
more than one fund management company
1 For China, securities services refer to part or all of the following business operations a securities company may
undertake upon the approval of China Securities Regulatory Commission: (a) securities brokerage; (b). securities
investment consulting; (c) financial advising relating to securities trading or investment; (d) securities underwriting
and sponsorship; (e) proprietary account transactions; (f) securities asset management; and (g) other securities
businesses.
Without Prejudice
84
Sector or sub-sector Limitations on market access
thereof.
4. Unbound for the relevant services
provided by financial asset management
company, financial asset investment
company or pension fund management
company.
8. HEALTH-RELATED SERVICES AND SOCIAL SERVICES
- Hospital services
(CPC 9311)
The establishment of hospitals or clinics is
subject to quantitative limitations in line with
China's needs.
9. TOURISM AND TRAVEL RELATED SERVICES
A. Hotels (including apartment
buildings) and Restaurants
(CPC 641-643)
Foreign investors are permitted to construct,
renovate and operate hotel and restaurant
establishments in China.
B. Travel Agency and Tour Operator
(CPC 7471)
The business scope of the travel agency/ tour
operator is as follows:
a) travel and hotel accommodation services
for foreign travellers which can be made
directly with transportation and hotel
operators in China covering such operations;
b) travel services and hotel accommodation
services for domestic travellers which can be
made directly with transportation and hotel
operators in China covering such operations;
c) conducting of tours within China for
both domestic and foreign travellers, and
d) travellers check cashing services within
China.
10. SPORTING SERVICES
- Sporting services
(CPC 96411, 96412, 96413, 96419)
None
11. TRANSPORT SERVICES
A. Maritime Transport Services
- International transport (freight
and passengers)
(CPC 7211 and 7212 less cabotage
transport services)
None1
1 For greater certainty, the preconditions that are required by China’s domestic law for operating a fleet under the
national flag of the People’s Republic of China are not affected by the commitments listed in this subsection.
Without Prejudice
85
Sector or sub-sector Limitations on market access
H. Auxiliary Services
a. Maritime cargo-handling services
(CPC 741)
c. Customs clearance services for
maritime transport
None
d. Container station and depot services None
e. Maritime agency services None
C. Air Transport Services
d. Aircraft repair and maintenance
services
(CPC 8868)
Establishment of juridical person is required.
Computer Reservation System (CRS)
services
None
the Selling and Marketing of air
transport services
None
Ground handling services The number of service suppliers in each
airport may be limited depending on the size
of the airport.
E. Rail Transport Services
F. Road Transport Services
Freight transportation by rail (CPC
7112)
Freight transportation by road in
trucks or cars (CPC 7123)
Supporting services for rail transport
services (CPC 743)
None
H. Services Auxiliary to all Modes of
Transport
Storage and warehousing services
(CPC 742)
None
Freight forwarding agency services
(CPC 748 and 749, excluding freight
inspection services)
None
12. MANUFACTURING
A. Processing of agricultural and
sideline food
(ICNEA: 13)
None
B. Manufacture of food product
(ICNEA: 14)
Only the designated common salt production
enterprises with approval may engage in the
production of common salt.
Without Prejudice
86
Sector or sub-sector Limitations on market access
C. Manufacture of liquor, beverages
and refined tea
(ICNEA: 15)
None
D. Manufacture of textiles
(ICNEA: 17)
None
E. Manufacture of wearing apparel
(ICNEA: 18)
None
F. Manufacture of leather, fur, feather
and their products, as well as footwear
(ICNEA: 19)
None
G. Processing of wood, and
manufacture of product of wood,
bamboo, rattan, palm and straw
(ICNEA: 20)
None
H. Manufacture of furniture
(ICNEA: 21)
None
I. Manufacture of paper and paper
products
(ICNEA: 22)
None
J. Printing and reproduction of
recorded media
(ICNEA: 23)
Increasing production capacity of printing
and reproduction of recorded media shall be
in line with the planning.
K. Manufacture of goods for cultural
education, arts and crafts, sports and
recreation
(ICNEA: 24)
None
L. Processing of petroleum, coal, and
other fuels
(ICNEA: 25)
Increasing production capacity for oil
refining shall be in line with the planning.
M. Manufacture of raw chemical
materials and chemical products
(ICNEA: 26)
Application for engaging in the production of
explosives for civil uses shall be in line with
the planning.
N. Manufacture of pharmaceuticals
(ICNEA: 27)
Only designated enterprises may produce the
veterinary biological products used for
compulsory immunization.
O. Manufacture of chemical fibres
(ICNEA: 28)
None
P. Manufacture of rubber and plastic
products
(ICNEA: 29)
None
Q. Manufacture of non-metallic
mineral products
Increasing production capacity for cement
clinker and sheet glass is prohibited. For the
Without Prejudice
87
Sector or sub-sector Limitations on market access
(ICNEA: 30) new cement clinker and sheet glass project
that are necessary, the production capacity in
the new project shall replace that of an old
project with same or greater production
capacity than the new project.
R. Smelting and rolling processing of
ferrous metals
(ICNEA: 31)
1. The establishment of new independent iron
smelting, steel smelting, or hot rolling
enterprises is prohibited.
2. Increasing production capacity for steel is
prohibited. The production capacity for steel
in the project for structure adjustment and
reconstruction, and the steel project proposed
or under construction that have been
approved or filed shall replace that of an old
project with greater production capacity than
the new project.
S. Smelting and rolling processing of
non-ferrous metals
(ICNEA: 32)
Increasing production capacity for
electrolytic aluminum is prohibited, unless
the production capacity for electrolytic
aluminum in the new project is to replace that
of an old project with the same or greater
production capacity than the new project.
The production capacity for and the
establishment of enterprises for rare earth
smelting and separation are subject to
quantitative restriction.
T. Manufacture of fabricated metal
products
(ICNEA: 33)
None
U. Manufacture of general-purpose
equipment
(ICNEA: 34)
None
V. Manufacture of special-purpose
equipment
(ICNEA: 35)
None
W. Manufacture of motor vehicles
(ICNEA: 36)
1 1 . The establishment of new traditional
fuel-powered motor vehicle enterprises is
prohibited. Increasing production capacity for
traditional fuel-powered motor vehicle
1 For greater certainty, the restrictions mentioned in Paragraph 1 does not apply for the acquisition of existing
traditional fuel-powered motor vehicle enterprises.
Without Prejudice
88
Sector or sub-sector Limitations on market access
enterprises by existing auto companies shall
meet the following conditions1:
(1) The utilisation rate of automobile capacity
in the previous two years was higher than the
industry average of the same product
category;
(2) The proportion of new energy vehicles
output in the previous two years was higher
than the industry average;
(3) The utilisation rate of automobile capacity
in the two previous years in the province
where the project is located is higher than the
average level of the same product category
and there is no fuel vehicle enterprise of the
same product category that is specifically
disclosed by the industry regulator.
2. A new independent investment project for
pure electric vehicles2 by an enterprise may
only be established in a province meeting the
following conditions: (1) The utilisation rate
of automobile capacity in such a province in
the previous two years was higher than the
average level of the same product category;
(2) The existing independent investment
projects for pure electric vehicle of identical
product categories by an enterprise in such a
province have all been completed and the
annual output has reached its constructed
scale.
X. Manufacture of railway equipment,
ships and boats, aircraft and
spacecraft, and other transport
equipment
(ICNEA: 37)
Any project with new production capacity of
ships and boats is prohibited.
Y. Manufacture of electrical
machinery and equipment
(ICNEA: 38)
None
1 Investors are entitled to access the data relating to the utilization rate of capacity and the proportion of output
mentioned in Paragraph 1. 2 For greater certainty, establishing a new independent investment project for pure electric vehicles by an
enterprise does not include that expansion the business into production of pure electric vehicles by an existing
automobile manufacturer in China.
Without Prejudice
89
Sector or sub-sector Limitations on market access
Z. Manufacture of computer,
communication, and other electrical
equipment
(ICNEA: 39)
None
AA. Manufacture of instruments
(ICNEA: 40)
None
BB. Other Manufacturing
(ICNEA: 41)
None
CC. Comprehensive utilization of
waste resources
(ICNEA: 42)
None
DD. Repair of fabricated metal
products, and machinery and
equipment
(ICNEA: 43)
None
Without Prejudice
90
Annex IV
Without Prejudice
91
Annex IV
Schedule of China
Business Visitors for Establishment Purposes and Intra- Corporate
Transferees
1. Managers and specialists may be required to demonstrate they possess
the professional qualifications and experience needed in the enterprise
to which they are transferred.
2. China reserves the right to adopt or maintain any measure with respect
to the entry and temporary stay of Business visitors for Establishment
Purposes and Intra-corporate transferees employed by a non-profit
organization.
3. The limitations applicable to the (entry and) temporary stay of natural
persons specified in the Schedule of Specific Commitments of China
(as set out in GATS/SC/135) upon China’s accession to the WTO
shall apply to Business Visitors for Establishment Purposes and
Intra-corporate Transferees, with respect to the sectors inscribed
therein, to the extent relevant.
4. Any reservation set out in Annex I and II also constitutes a reservation
Without Prejudice
92
for the purposes of Annex IV to the extent that the measure set out in
or permitted by that reservation affects the treatment of natural
persons for business purposes present in the territory of the other
party.
Without Prejudice
93
Annex X
1.The “traditional fuel-powered motor vehicle” mentioned in Paragraph 1 in
12W of China's Schedule of specific commitments and limitations on market
access does not include new energy vehicle (NEV), such as pure electric
vehicle including fuel cell entire vehicle (FCEV),and plug-in hybrid entire
vehicle (PHEV) 1etc.
2. In order to intensify the cooperation in the field of new energy vehicles
between both Parties, Paragraph 2 in 12W of China's Schedule of specific
commitments and limitations on market access does not apply to the
establishment of a new independent investment project for pure electric
vehicles by an enterprise that is invested by an investor of the other Party
provided that the total investment amount for this project is no less than USD 1
billion.
1 For further clarification, Paragraph 2 in 12W of China's Schedule of specific commitments and limitations on
market access and Paragraph 2 in this Annex shall apply to the establishment of a new independent investment
project for PHEV by an enterprise.
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