Trade Policy Review Body - China - Draft minutes of the meeting held on 17 and 19 July 2024

CHINA

Draft MINUTES of the Meeting* held on 17 and 19 july 2024

Delegations are invited to submit factual corrections, if any, on their own statement to the Secretariat (Daniela Salas: danielamariana.salas@wto.org, or to tprd@wto.org) no later than 3 October 2024.


Trade Policy Review

China

DRAFT Minutes of the Meeting

Chairperson: H.E. Dr Adamu Mohammed Abdulhamid (Nigeria)

CONTENTS

 

1   INTRODUCTORY REMARKS BY THE CHAIRPERSON.. 3

2   OPENING STATEMENT BY THE REPRESENTATIVE OF CHINA (H.E. MR LI FEI, VICE‑MINISTER OF COMMERCE). 5

3   STATEMENT BY THE DISCUSSANT. 8

4   STATEMENTS BY MEMBERS. 12

5   REPLIES BY THE REPRESENTATIVE OF CHINA (mR Han Yong, dIRECTOR
GENERAL OF THE MINISTRY OF COMMERCE) AND ADDITIONAL COMMENTS. 89

6   CONCLUDING REMARKS BY THE CHAIRPERSON


1  INTRODUCTORY REMARKS BY THE CHAIRPERSON

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.