|
China’s commitments are comprehensive and detailed in terms of its contents. Among them the part of trade in services is of much important in that China’s service industries are not very competitive compared with overseas giants and whether or not China will implement its commitments timely and properly is a concern of many foreign investors. So far the implementation of commitments is satisfactory in accordance with the response of WTO members.
The following are some instances concerning the implementation of market accession commitments of trade in services:
(1) Legal services. In accordance with China’s commitments, only the representative offices of foreign law firms are permitted in China, but the geographic and quantitative restrictions will be eliminated within one year upon China’s entry into the WTO. In order to materialize such commitment, the State Council promulgated Regulations on the Administration of the Representative Office of Foreign Law Firms in China. In fact some foreign law firms have had two representative offices in mainland as a result of elimination of quantity restriction , and the time of such elimination is earlier than what was stated in China’s commitments. Now representative offices of foreign law firms are mainly located in Beijing, Shanghai and Guangzhou, and hopefully more will come to the middle and west China together with the development of these areas. As to the business scope of foreign representative offices, a departmental rule of Ministry of Justice contains clear and detailed provisions, which are in full conformity with China’s commitments.
(2) Financial Services
China’s financial services are not very strong in comparison with its competitors of developed countries. It is true that China’s financial institutions, especially state-owned banks with long history, have weak competition ability, huge amount of bed debts, poor asset quality and low-efficient management, but definitely not as worse as what are reported overseas. In WTO accession negotiations, China took very cautious and practical attitudes to open its financial market. The negotiation is time-consuming and energy-consuming, but the out-coming was acceptable to all negotiation parties.
A.Banking services. Pursuant to commitments and the international practices of banking supervision, the State Council amended Regulations on Foreign Financial Institutions, which entered into force as of February 1,2002. In the meanwhile, the People’s Bank of China (“PBC”) as the competent department of the administration of baking industry made some implementing rules to regulate and supervise the operation of foreign financial institutions. So far the business managements of foreign banks are still subject to geological restrictions, business scope restrictions and strict supervisions, but within regions of their business scopes these foreign institutions have imposed great competition pressures on domestic banks.
B. Insurance services. China is a very promising insurance market in respect of its great populations and its quick development of economy. For that reason many international insurance companies try to enter China’s market as early as possible to take advantageous positions in market competition. Before China’s WTO accession, many foreign insurance companies had been doing business in China by setting up joint venture enterprise with their Chinese partners. For the purpose of fulfilling China’s commitments and strengthening the administration of insurance sector, the State Council enacted Foreign Insurance Companies Administration Regulations, which entered into force as of February 1,2002.
C. Securities Services. China’s securities market was set up more than ten years ago as a result of economic reform and develops very fast in recent four years. While, it has certain intrinsic structural problems , just like many other newly-jumped-up securities markets in developing countries. China committed its permission to set up Chinese-foreign equity joint ventures of securities companies and securities investment management companies within specified period upon its entry, and these commitments need to be stipulated in regulations.
(3) Audiovisual services. The State Council amended Regulations on the Administration of Audio and Video Products and Regulations on the Administration of Movies, in which foreign investments are mentioned. The implementing rules, such as Regulatory Measures on Sino-Foreign Contractual Cooperative Enterprises of Audio and Video Products Distribution and Provisional Rules on Foreign Investment in Cinema Theatres , made detailed provision to market accession in accordance with China’s commitments.
|
