Trade Policy Review
China
Minutes of the
Meeting
Chairperson: H.E. Dr Adamu Mohammed Abdulhamid (Nigeria)
CONTENTS
1 INTRODUCTORY REMARKS BY THE CHAIRPERSON.. 2
2 OPENING
STATEMENT BY THE REPRESENTATIVE OF CHINA. 4
3 STATEMENT BY
THE DISCUSSANT. 7
4 STATEMENTS BY
MEMBERS. 11
5 REPLIES BY THE
REPRESENTATIVE OF CHINA AND ADDITIONAL COMMENTS. 85
6 CONCLUDING
REMARKS BY THE CHAIRPERSON.. 102
Note: Advance written
questions and additional questions by WTO Members, and the replies provided by
China are reproduced in document _WT/TPR/M/458/Add.1 and will be available online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.
1.1. The
ninth Trade Policy Review of China was held on 17 and
19 July 2024. The Chairperson,
H.E. Dr Adamu Mohammed Abdulhamid (Nigeria), welcomed
the delegation of China, headed by H.E. Mr Li Fei, Vice‑Minister
of Commerce of China; H.E. Ambassador Li Chenggang, Permanent
Representative of China to the WTO; the rest of the delegation; and the
discussant, H.E. Mr Dandy Satria Iswara (Indonesia).
1.2. In addition to
physical presence, the meeting also benefited from Interprefy online connection
allowing for a wider participation of the Membership on the first day. However,
due to a global IT outage, the second day of the meeting was held in
person only.
1.3. The Chairperson
recalled the purpose of TPRs and the main elements of procedures for the
meeting. The Report by China is contained in document _WT/TPR/G/458, and that of the
WTO Secretariat in document _WT/TPR/S/458 and _WT/TPR/S/458/Corr.1.
1.4. Questions by the
following delegations were submitted in writing before the deadline:
Russian Federation; Singapore; United Kingdom; Iceland; Australia;
Malaysia; United States; Switzerland; Morocco; Philippines; Thailand;
European Union; Djibouti; Cambodia; Brazil; Chile;
Hong Kong, China; Israel; Ecuador; Republic of Korea;
Costa Rica; Dominican Republic; New Zealand; Colombia;
Chinese Taipei; Bangladesh; Uruguay; Ukraine; Norway; Japan; India;
Argentina; Pakistan; and Nepal. The following delegations submitted written
questions after the deadline: Cameroon, Indonesia, Canada, Türkiye, Honduras,
Kazakhstan, Panama, Kingdom of Saudi Arabia, Jamaica, and
El Salvador.
1.5. At the time of
China's previous Review in 2021, Members noted that China was one of the
world's largest traders and its economy has been a major driver of global
growth and commended the country on its swift fiscal and monetary policy
measures, which helped mitigate the economic impact of the COVID‑19 pandemic.
1.6. China was praised
for its active participation at the WTO, including in Joint Statement
Initiatives. Nonetheless, some Members urged China to assume more
responsibility commensurate with its trade weight.
1.7. In this context,
the Chairperson first focused on China's economic developments since its last
Review. The Secretariat's Report indicates that real GDP growth rates fell from
8.4% in 2021 to 3% in 2022, which partly reflects the effect of the COVID‑19
pandemic and related policy measures. In 2023, real GDP grew at 5.2%.
1.8. The Chairperson was
encouraged to read from the Government Report prepared for the current Review,
that China commits itself to comprehensively deepening reforms, promoting the
liberalization of its markets, and deepening fiscal, taxation, and financial reforms.
1.9. In the previous
Review in 2021, various Members indicated that foreign companies established in
China still reported significant issues relating to unequal treatment with
local companies, inconsistent application of regulations, hidden subsidies, and
business environment that was perceived as increasingly biased.
1.10. During the period
covered by the current Review, the Chairperson understood that the trade policy
regime of China did not change much except, inter alia, reductions
in the number of items listed in its foreign investment negative lists, several
reforms in its IP regime, and adoption or revision of various laws related to
agriculture. At the same time, a recurring issue of interest seems to be the
role played in the economy by the State and ensuring transparency of various
aspects of China's trade policies and practices. Some of these issues were
raised again by Members in the context of the current Review.
1.11. As was the case
during China's previous Review, several Members have requested more detailed
information regarding China's government support framework. Specifically, they
seek clarification on the measures taken by authorities to address statistical
challenges related to reporting data on subsidy amounts, financial
appropriations for subcentral programmes, and Government Guidance Funds. Due to
the apparent lack of this information, many Members have expressed concerns
about China's subsidy policies, which they believe have contributed to
overcapacity in industries such as steel, automobiles, and solar panels.
1.12. A number of other
issues raised in the advance written questions also reflect issues that were
already discussed during the previous Review. These include the application of
the national treatment principle to foreign investment; consistency of import
and export control measures; agricultural strategies and regulations, including
the rationale for certain support measures; alignment of SPS and TBT
regulations to relevant international standards; various mechanisms, including
trade‑related instruments, to support energy transition; services trade
liberalization, including measures to further facilitate foreign participation
in the telecommunications and financial services sectors; and the trade and
investment effects of China's cybersecurity regime.
1.13. For the current
Review, China received 1,571 advance written
questions from 44 delegations. Of these, 1,265 were sent within the
established deadline. Prior to the meeting, China provided written replies to
all the questions submitted prior to the deadline.
1.14. The meeting was a
good opportunity for Members to hear about progress made on the issues
discussed during the previous Review, and to discuss in greater detail issues
of interest to them, including some that are of more systemic importance to the
multilateral trading system. It was also an opportune moment for China to
update Members on more recent developments regarding the issues outlined in the
Government and Secretariat Reports. In that regard, the Chairperson also
recalled that the day before the meeting China organized an informal side‑event
to provide further background on its recent trade and economic policies,
situation and outlook, in line with ideas discussed during the 7th Appraisal
of the TPRM to provide further opportunities for interaction in the context of
TPRs. The Chairperson expressed the view that the seminar may have provided
valuable ideas and experience for those Members who are considering similar
initiatives during their respective reviews. The Chairperson looked
forward to a fruitful exchange.