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Tweet[IWS] USTR: 2014 REPORT TO CONGRESS ON CHINA'S WTO COMPLIANCE [December 2014]
IWS Documented News Service
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Institute for Workplace Studies-----------------Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor--------------------Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
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United States Trade Representative (USTR)
2014 REPORT TO CONGRESS ON CHINA'S WTO COMPLIANCE [December 2014]
https://ustr.gov/sites/default/files/2014-Report-to-Congress-Final.pdf
[full-text, 180 pages]
TABLE OF CONTENTS
FOREWORD ……………………………………………………………………………………..………………………………………….. 1
EXECUTIVE SUMMARY ………………………………………………………………………….……………………………………… 2
OVERVIEW …………………………………………………………………………………………………………………………………..……. 2
CHINA’S FIRST 13 YEARS AS WTO MEMBER ………………………………………………………………………………………… 3
2014 DEVELOPMENTS…………………………………………………………………………………………………………………………… 5
CONCLUSIONS REGARDING CHINA’S WTO COMPLIANCE EFFORTS …………………………………………….……… 8
PRIORITY ISSUES ….……..…………………………………………………….………………………………………………………….…….. 8
Intellectual Property Rights ……………………………………………………………………………………………..………. 8
Industrial Policies …………………………………………………………………………………………………………….……… 10
Services ……………………………………………………………………………………………………………..…………………… 14
Agriculture ……………………………………………………………………………………………………………………….……….… 17
Transparency …………………………………………………………………………………………………………………….…..… 18
Legal Framework …………………………………………………………………………………………………………….……… 19
NEXT STEPS …………………………………………………………………………………………………………………………… 19
Table 1: Summary Conclusions regarding China’s WTO Compliance Efforts ………………..……………………… 21
INTRODUCTION ………………………………………………………………………………………………………………………...… 27
CHINA’S WTO ACCESSION NEGOTIATIONS ………………………………………………………………………………………… 27
CHINA’S WTO COMMITMENTS …………………………………….…………………………………………………………..…… 27
OVERVIEW OF U.S. ENGAGEMENT ………………………………………………………………………………………… 29
DIALOGUE ………………………………………………………………………………………………………………………..………… 29
Bilateral Engagement ………………………………………………………………….………………………………..………… 29
Multilateral Meetings ………………………………………………………………….…………………………………..……… 32
ENFORCEMENT ………………………………………………………………………………..….……………………………………………… 32
Table 2: Active U.S. WTO Disputes against China ………………………………………………………………………….. 36
CHINA’S WTO COMPLIANCE ………………………………………………………………….……………………..……… 38
TRADING RIGHTS ……………....……………………………………………………….………………………………………………….……… 38
IMPORT REGULATION ………………………………………………………………….…………………………………..……… 39
Tariffs ………………………………………………………………….…………………………………..……… 39
Customs and Trade Administration ………………………………………………………………….……….……… 40
CUSTOMS VALUATION ………………………………………………………………….…………………………………..……… 40
RULES OF ORIGIN ………………………………………………………………….…………………………………..……… 42
IMPORT LICENSING ………………………………………………………………….…………………………………..……… 42
Non-tariff Measures ………………………………………………………………….…………………………………..……… 44
Tariff-rate Quotas on Industrial Products …………………………………………………………………………..……… 44
Other Import Regulation ………………………………………………………………….…………………………………..……… 45
ANTIDUMPING ………………………………………………………………….…………………………………..……… 45
COUNTERVAILING DUTIES ………………………………………………………………….…………………………………..……… 48
SAFEGUARDS ………………………………………………………………….…………………………………..……… 50
EXPORT REGULATION ………………………………………………………………….…………………………………..……… 50
INTERNAL POLICIES AFFECTING TRADE …….…………………………………………………………….……..……… 54
Non-discrimination ………………………………………………………………….…………………………………..……… 54
Taxation …………….………………………………………………………………….…………………………………..……… 56
Subsidies …………….………………………………………………………………….…………………………………..……… 57
Price Controls ………………………………………………………………….…………………………………..……… 61
Standards, Technical Regulations and Conformity Assessment Procedures ………………………………... 63
RESTRUCTURING OF REGULATORS ………………………………………………………………………………………… 64
STANDARDS AND TECHNICAL REGULATIONS ……………………………………………………………………………….… 64
CONFORMITY ASSESSMENT PROCEDURES ………………………………………………………………………………………… 72
TRANSPARENCY ………………………………………………………………….…………………………………..…….. 78
Other Internal Policies ………………………………………………………………….…………………………………..……… 78
STATE-OWNED AND STATE-INVESTED ENTERPRISES …………………………………………………………….……….…… 78
STATE TRADING ENTERPRISES ………………………………………………………………………………………… 81
GOVERNMENT PROCUREMENT ………………………………………………………………………………………… 81
INVESTMENT ………………………………………………………………………………………………………………………………….. 86
AGRICULTURE ………………………………………………………………………………………………………………………………….. 97
Tariffs ………………………………………………………………………………………………………………………………….. 99
Tariff-rate Quotas on Bulk Agricultural Commodities ……………………………………………………………………. 100
China’s Biotechnology Regulations ………………………………………………………………………………………… 101
Sanitary and Phytosanitary Issues ………………………………………………………………………………………… 103
Inspection-related Requirements ………………………………………………………………………………………… 109
Domestic Support ………………………………………………………………………………………………………..………….. 110
Export Subsidies ………………………………………………………………………………………………………..………….. 111
INTELLECTUAL PROPERTY RIGHTS ………………………………………………………………………………………… 111
Legal Framework ………………………………………………………………….…………………………………..……… 112
Enforcement ………………………………………………………………….…………………………………..……… 117
SERVICES ………………………………………………………………………………………………………………………………….. 122
Distribution Services ………………………………………………………………….…………………………………..…….… 124
WHOLESALING SERVICES ………………………………………………………………….…………………………………..……… 124
RETAILING SERVICES ………………………………………………………………….…………………………………..……… 126
FRANCHISING SERVICES ………………………………………………………………….…………………………………..……… 127
DIRECT SELLING SERVICES ………………………………………………………………….…………………………………..……… 127
Financial Services ………………………………………………………………….…………………………………..……… 128
BANKING ………………………………………………………………….…………………………………..……… 128
MOTOR VEHICLE FINANCING ………………………………………………………………………………………… 130
INSURANCE ………………………………………………………………….…………………………………..……… 131
FINANCIAL INFORMATION ………………………………………………………………….…………………………………..……… 133
ELECTRONIC PAYMENT SERVICES ………………………………………………………………………………………… 133
Legal Services ………………………………………………………………….…………………………………..……… 134
Telecommunications ………………………………………………………………….…………………………………..……… 136
Audiovisual and Related Services ………………………………………………………………………………………… 137
Internet-related Services ………………………………………………………………….…………………………………..……… 138
Construction and Related Engineering Services …………………………………………………………………………… 140
Education Services …………………………………………………………………………………………………………………….. 141
Express Delivery Services ………………………………………………………………….…………………………………..……… 142
Logistics Services …………………………………………………………………………………………………………………….. 143
Aviation Services …………………………………………………………………………………………………………………….. 143
Maritime Services …………………………………………………………………………………………………………………….. 144
Tourism and Travel-related Services ………………………………………………………………………………………… 144
LEGAL FRAMEWORK …………………………………………………………………………………………………………………….. 144
Transparency …………………………………………………………………………………………………………………….. 145
OFFICIAL JOURNAL …………………………………………………………………………………………………………………….. 145
TRANSLATIONS …………………………………………………………………………………………………………………….. 146
PUBLIC COMMENT …………………………………………………………………………………………………………………….. 146
ENQUIRY POINTS …………………………………………………………………………………………………………………….. 148
Uniform Application of Laws ………………………………………………………………………………………………………. 148
Judicial Review …………………………………………………………………………………………………………………….. 149
Other Legal Framework Issues ………………………………………………………………………………………………………. 149
ADMINISTRATIVE LICENSING ……………………………………………………………………………………………….. 149
COMPETITON POLICY …………………………………………………………………………………………………………………….. 150
COMMERCIAL DISPUTE RESOLUTION ……………………………………………………………………………………………….. 152
LABOR LAWS …………………………………………………………………………………………………………………….. 153
LAND LAWS …………………………………………………………………………………………………………………….. 154
CORRUPTION …………………………………………………………………………………………………………………….. 154
APPENDICES
Appendix 1: List of Written Submissions Commenting on China’s WTO Compliance
September 17, 2014
Appendix 2: List of Witnesses Testifying on China’s WTO Compliance
October 1, 2014
Appendix 3: U.S. Fact Sheet for 25th U.S.-China Joint Commission on Commerce and Trade Meeting
December 18, 2014
Appendix 4: Excerpts from
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