Retail and Wholesale Sector's WTO Commitments
Limitations on market access for retailing services (excluding
tobacco):
If the services are provided in the form of cross-border supply,
there shall be no limitations except for mail order. If the services are
provided in the form of consumption abroad, there shall be no limitations. If
the services are provided in the form of commercial presence, foreign service
suppliers may supply services only in forms of joint ventures in five Special
Economic Zones (Shenzhen, Zhuhai, Shantou, Xiamen and Hainan) and six cities
(Beijing, Shanghai, Tianjin, Guangzhou, Dalian and Qingdao).
In Beijing and
Shanghai, a total of no more than four joint venture retailing enterprises are
permitted respectively. In each of the other cities, no more than two joint
venture retailing enterprises will be permitted. Two joint venture retailing
enterprises among the four to be established in Beijing may set up their
branches in the same city.
Upon China's accession to the WTO, Zhengzhou and Wuhan will be immediately
open to joint venture retailing enterprises. Within two years after China's
accession to the WTO, foreign majority control will be permitted in joint
venture retailing.
Retailing of chemical fertilizers will be open within five
years after the accession.
There shall be no limitations within three years after accession, except for:
retailing of chemical fertilizers, within five years after accession; and those
chain stores which sell products of different types and brands from multiple
suppliers with more than 30 outlets. For such chain stores with more than 30
outlets, foreign majority ownership will not be permitted if those chain stores
distribute any of the following products: motor vehicles (for a period of five
years after accession at which time the equity limitation will have been
eliminated), and products listed above and in Annex 2a of the Protocol of
China's WTO Accession.
The foreign chain store operators will have the freedom of choice of any
partner, legally established in China according to China's laws and regulations.
If the services are provided in the form of presence of natural persons unbound,
there shall be no commitments except as indicated in Horizontal Commitments and
the contents of Horizontal Commitments are: there shall be no commitments except
for measures concerning the entry and temporary stay of natural persons who fall
into one of the following categories:
(a) Managers, executives and specialists defined as senior employees of a
corporation of a WTO Member that has established a representative office, branch
or subsidiary in the territory of the People's Republic of China, temporarily
moving as intra-corporate transferees, shall be permitted entry for an initial
stay of three years;
(b) Managers, executives and specialists defined as senior employees of a
corporation of WTO Members, being engaged in the foreign invested enterprises in
the territory of the People's Republic of China for conducting business, shall
be granted a long-term stay permit as stipulated in the terms of contracts
concerned or an initial stay of three years, whichever is shorter;
(c) Service salespersons---persons not based in the territory of the People's
Republic of China and receiving no remuneration from a source located within
China, and who are engaged in activities related to representing a service
supplier for the purpose of negotiation for the sale of such services of that
supplier where: such sales are not directly made to the general public and the
salesperson is not engaged in supplying the service, entry for salespersons is
limited to 90 days.
(For more biz stories, please visit Industry Updates)
