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[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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This service is supported, in part, by donations. Please consider making a donation by following the instructions at http://www.ilr.cornell.edu/iws/news-bureau/support.html

 

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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This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

 

 

 

 

 

 

 

 

 




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