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
1.1. 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.