Machinery Industry
Updated: 2006-04-18 15:01
Machinery Industry's WTO Commitments
In line with the WTO commitments, with respect to tariffs, the average tariff
rate for industrial products in 2002 declined to 11.7 percent and that for
mechanical products declined to 9.6 percent.
With respect to non-tariffs, all quotas and other measures of quantitative
restrictions for mechanical products will be eliminated by 2005. During the
transitional period, quotas will continue to be used by a few imported
mechanical products, mainly automobile products, at a certain rate of decrease
per year until they are removed completely.
China will gradually open domestic distribution sectors and grant foreigners
the right to business in China and the right to foreign trade within three years
of the WTO accession.
China will also open the distribution services related to mechanical
products, including commission agents' services, wholesale trade services,
retailing services and franchising services, and after sales services. On the
other hand, the restrictions on regions, quantities and equity interests for
foreign investors to set up distribution enterprises will be eliminated
gradually and the tendering requirements on non-government procurement will be
removed.
In addition, the supports that the government provides after the accession
will be limited to the scope of only adjusting foreign exchange rate and export
rebate. The patents from the west developed countries, when used by China's
machinery industry, must be paid for the license of the patent. The Government
will promptly issue laws, regulations, judicial decisions and administrative
rulings for general recourses related to imports and exports so as to enhance
the transparency of trade policies.
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