.Preface

¡¡¡¡Director of the Editorial Board WANG Zhan
Vice Directors of the Editorial Board WANG Xinkui TANG Qinfu

Chief Editor WANG Xinkui
Deputy Chief Editor SUN Fuqin

Members of the Editorial Board (arranged in numerical order of strokes in the Chinese surnames):
FENG Jun SUN Fuqin XIANG Mingxun
CHENG Shuaihua XIAO Weiqun GAO Yongfu
XU Zheng GUO Ai¡¯jun GONG Baihua
FAN Yongming

Approved by WANG Xinkui

TABLES OF CONTENTS

Foreword WANG Xinkui

Chapter One Government Administration
Part One Improving the Legal System and Standardizing Administrative Behavior
Part Two Promoting Transparency and Democracy in the Legislation Process
Part Three Establishing an Open Government Information System
Part Four Deepening the Reform on Administrative Examination and Approval System
Part Five Improving and Standardizing Market Regulation
Section One Launching an Inspection Exemption System for Industrial and
Commercial Enterprises
Section Two Implementing Classified Enterprise Management and Disclosing Enterprise Information Regarding Severe Law-breaking Conduct
Section Three Standardizing Contracts and Reinforcing Administrative Guidance and Service
Section Four Implementing Online Annual Inspection

Part Six Promoting E-administration to Raise Efficiency

Chapter Two Market Access
Part One Market Access in respect of Trade in Goods in Shanghai During 2003
Section One Trading Rights
Section Two Quota and License Regime
Section Three Textile Quota
Section Four Export Subsidies
Section Five Tariff Concession
Part Two Impact of Market Access to Trade in Goods on Related Sectors in Shanghai
Section One Automotive Sector
Section Two Petrochemical Industry
Section Three Metallurgical Industry
Section Four Electromechanical Industry
Section Five Electronics and Information Industry
Section Six Pharmaceutical Industry

Part Three Market Access to Services in Shanghai During 2003
Section One Financial Services
Section Two Travel Industry
Section Three Retail and Wholesale Trades
Section Four Legal Services
Section Five Advertising
Section Six Education
Section Seven Telecommunication Services
Chapter Three Protection of Intellectual Property Rights
Part One Amendments to Laws concerning Intellectual Property Rights
Section One Amendments to the Patent Law and its Implementing Regulations
Section Two Amendments to the Trademark Law
Section Three Amendments to the Copyright Law
Section Four Formulation of Relevant Laws and Regulations
Section Five Enforcement against Suspected IPR Infringements

Part Two Legislation on Patent Protection in Shanghai
Section One Concrete Procedures of Administrative Protection for Patents
Section Two IPR Protection in Exhibitions
Section Three Standardization of Administrative Enforcement for Patents
Part Three Protection of Intellectual Property Rights in Shanghai
Section One Developing Public Awareness on IPR Protection
Section Two Enhancement of the Patent Protection System
Section Three Establishment of an Inter-Provincial Cooperation System for IPR Protection Enforcement
Section Four Regular Management of Trademark Protection
Section Five Promotion of Administrative Protection for Copyrights
Section Six Rectification of the Audio-Visual Market
Section Seven Customs Tougher Control over Infringing Products
Section Eight Consolidation of Judicial Protection for IPR

Chapter Four Trade Remedies
Part One New Developments of Trade Remedy Mechanism in Shanghai
Part Two Number and Outcome of Anti-dumping Cases and Safeguard Measures against Shanghai Exports
Part Three Number and Outcome of Anti-dumping Cases by Shanghai Enterprises against Imports
Part Four The Monitoring and Early-Warning Information System for Trade Remedies in Shanghai

Chapter Five Trade-Related Technical Measures
Part One China¡¯s Further Regulation of Its Trade-Related Technical Measures
Part Two Measures Implemented in Shanghai under TBT Agreement
Section One Routine Inspection of Imports and Exports
Section Two Compulsory Pre-Entry Certificate Examination
Section Three Technical Measures Related to Environmental Requirements
Part Three Measures Implemented in Shanghai under SPS Agreement
Section One SPS Inspections
Section Two Technical Measures Applied to Food and Cosmetic Imports
Section Three Investigation on Rejected Exports
Section Four SPS Registration on Exports

Part Four Analysis of TBT Cases Involving Shanghai Exporters

Chapter Six Trade Facilitation
Part One Easy Clearance System
Section One The Leading Working Team of the Easy Clearance System
Section Two Implementation of the New Clearance Mode of ¡°Quarantine and Declaration in Advance and Immediate Clearance of Cargoes on Arrival¡±
Section Three Implementation of the 5-plus-2-days Working Schedule
Section Four Reform of the Clearance Mode in Particular Areas to Achieve Speedy Clearance
Section Five Implementation of EDI Clearance to Achieve Paperless Clearance
Section Six Taking Convenient Clearance Measures to Support High-tech Industry
Section Seven Implementation of Speedy Clearance across Customs Areas to Promote Integration of Regional Economy

Part Two Computerization of Customs Clearance and Electronic Management
Section One Integrating Information Resources to kick off the Operation of the Shanghai Branch of China¡¯s Electronic Port Databank
Section Two Launching of a Pilot Project of E-account books Networking for the Processing Trade
Section Three Data Interchanges among Port Law-Enforcement Departments and Inspection through Interconnected Network
Section Four Payment of Import and Export Taxes and Fees through EDI System

Part Three Customs Valuation
Section One Setting up New Rules for Customs Valuation
Section Two Measures taken by the Shanghai Customs to Safeguard the Compliance to the Newly Established Rules
Section Three Enhancing the Transparency of Customs Valuation to Foster a Favorable Law-Enforcement Environment

Chapter Seven Pudong¡¯s Economic and Social Development after China¡¯s Accession to the WTO
Part One Reform of Government Administration

Section One Promoting E-administration
Section Two Simplifying Enterprise Access System
Section Three Standardizing Regulatory Measures

Part Two Market Access
Section One Trade in Goods
Section Two Trade in Services

Part Three Protection of Intellectual Property Rights (IPR)
Section One Improving Coordination between Government Agencies
Section Two Conducting Education and Training on Intellectual Property Rights
Section Three Strengthening Regulation over Technology-related Patent Rights
Section Four Promoting the Establishment of Patent System in Enterprises
Section Five Setting up IPR Public Information and Service Platform
Section Six Reinforcing the Efforts and Expanding the Scope of Administrative Enforcement of IPR Laws and Regulations

Part Four Trade Facilitation

Box
Box 1.1 The ¡°Examination and Checking¡± System run by Shanghai in the Registration of Foreign-invested Enterprises
Box 1.2 Notification Commitment Implemented by the Shanghai Commercial and Industrial Administration
Box 1.3 ¡°Information Spokesperson¡± System Established by Shanghai
Box 1.4 Online Registration System for the Establishment of Permanent Representative Offices from Foreign Countries (regions)
Box 1.5 Further Lowering the Hurdles for Foreign-invested Enterprises¡¯ Access to Certain Industries
Box 2.1 China¡¯s Commitments to Liberalize the Trade in Goods (2003)
Box 2.2 China¡¯s Commitments to Liberalize the Financial Sector (2003)
Box 2.3 China¡¯s Commitments to Liberalize Tourist Market (2003)
Box 2.4 China¡¯s Commitments to Liberalize Brokerage, Wholesale and
Retail (2003)
Box 2.5 China¡¯s Commitments to Liberalize Legal Services (2003)
Box 2.6 China¡¯s Commitments to Liberalize the Advertising Market (2003)
Box 2.7 Shanghai¡¯s Liberalization of Trading Rights
Box 3.1 Definition of Intellectual Property Rights and Relevant International Conventions
Box 3.2 The Shanghai Anti-piracy Alliance
Box 4.1 China¡¯s WTO Accession Commitments (Anti-dumping)
Box 4.2 China¡¯s WTO Accession Commitments (Subsidies and Countervailing)
Box 4.3 Transitional Product-Specific Safeguard Mechanisms
Box 4.4 New Developments in China¡¯s Trade Remedy System
Box 4.5 2003 Statistics on Anti-dumping against Shanghai Exports
Box 4.6 2003 Statistics on Safeguard and TBT Measures against Shanghai Exports
Box 4.7 2003 Statistics on Special Safeguard Measures against Shanghai Exports
BOX 5.1 WTO Provisions Governing Trade-Related Technical Measures
BOX 5.2 Efforts in Motivating Enterprises to Participate in International Standardization
Box 6.1 China¡¯s Positive Attitude on Trade Facilitation
Cases
Case 1.1 Shanghai Media¡¯s Presence at a Public Hearing involving the Decision on Administrative Punishment
Case 2.1 The First Sino-Foreign Travel Agency Set Up in Shanghai
Case 2.2 A Successful Example of Educational Cooperation: China Europe International Business School (CEIBS)
Case 2.3 The First Sino-foreign Telecommunication Enterprise: Shanghai Symphony Telecom Co. Ltd.
Case 3.1 Reconciliation between Microsoft and Company A for Patent Infringement on Mouse Exterior Design
Case 3.2 Trademark Infringement by a Local Apparel Company
Case 3.3 First Invoking of the Provision for Damages in the Copyright Law
Case 5.1 To conduct Ram-Source Animal Protein Inspection in Strict Accordance With WTO Disciplines
Appendices
Appendix I A list of Anti-dumping Cases Launched by Shanghai Enterprises against Imports
Appendix II China¡¯s Anti-dumping Filing Procedure (against Imports)

Foreword
It has been 2 years since China joined the WTO. Year 2004 will be a crucial year for China to implement its WTO commitments during the transition period. Over the past 2 years, the profound impact of WTO accession on China¡¯s trade-related laws, trade regime, and business operation has fully unfolded. Practices have shown that joining the WTO is an important decision of strategic significance for China to fully integrate with the global economy so as to achieve social and economic modernization. It is playing an increasingly prominent role in driving the transition from planned centralized economy to socialist market economy, as reflected in the following aspects:

First of all, as China gradually completes the amendment and addition of necessary laws to fulfill its WTO commitments, it has become increasingly demanding for central and local governments at all levels to follow the non-discrimination and transparency principles of the WTO in their enforcement of these laws, covering almost all aspects in the administration of trade by the government.

Secondly, while China is now aligning its trade remedy system with WTO rules, other members are increasingly using trade remedy measures against Chinese enterprises. As a result, Chinese enterprises must learn how to use legal procedures to initiate or deal with trade remedy measures so as to protect themselves from unfair treatment. It has become an issue of paramount importance as there is a lack of professionals, information and supporting organizations in this field.

Finally, against the backdrop of the stalled Doha round, global trade protectionism is on the rise, posing a threat of abuse of trade remedy measures, especially with the emergence of a great number of disguised trade barriers that have worsened the trading environment for Chinese products. It has become a pressing issue to set up a coordinated system among the government, businesses and intermediary organizations, to utilize WTO rules positively and reduce the negative impact of trade protectionism on China.

Shanghai is the most important economic center of China, as well as a showcase of China¡¯s opening up. In recent years, we have seen an increasing trend for China-based foreign manufacturers or service providers to relocate their regional headquarters, R&D centers or marketing departments to Shanghai. Trade in goods via the Shanghai port is increasing considerably every year, in terms of both export and import. International trade and economic exchanges are becoming more frequent in Shanghai, making Shanghai a focal point for other WTO members to assess and observe China¡¯s WTO compliance efforts.

From the very first day of China¡¯s accession to the WTO, Shanghai has consistently been making concerted efforts to implement its commitments, and enhance its capability to conduct rule-based trade, regarding it as a strategic step to improve its investment environment and international competitiveness. In 2003, tremendous efforts were made and remarkable progress achieved in promoting transparency in government administration, raising market access for trade in goods and trade in services in line with the commitment schedules, making good use of trade remedies, standardizing trade-related technical measures and promoting trade facilitation.

As a key step to improve the transparency of WTO compliance efforts by the Shanghai Municipal Government, a yearly report on ¡°Shanghai¡¯s Social & Economic Development in relation to China¡¯s Accession to the WTO¡± is published by the Shanghai WTO Affairs Consultation Center (SCC/WTO), and is available to the public. The purpose of the report is to enable all stakeholders to learn about the efforts by Shanghai in implementing WTO commitments. This year, to fully and accurately reflect Shanghai¡¯s WTO compliance efforts, the report is compiled in a structure liable to better illustrate the implementation of major WTO commitments in 6 fields, i.e., government administration, market access, intellectual property rights protection, trade remedies, trade-related technical measures, and trade facilitation, as well as their impact on the social and economic development of Shanghai. The report is published in Chinese together with English translation.

The Shanghai WTO Affairs Consultation Center is a non-governmental organization led by the Joint Meeting of WTO Affairs of the Shanghai Municipal Government. It is especially aimed at providing government or businesses with training to become WTO professionals and legal advice or consultancy and WTO-related information. It also exercises monitoring and early-warning on trade remedies, keeps in contact with governments, businesses, trade associations and research institutes of major WTO members, and conducts policy studies for WTO-related affairs. SCC/WTO, as a bridge between the Shanghai Municipal Government and the public, regards the compilation of the report on ¡°Shanghai¡¯s Social & Economic Development in relation to China¡¯s Accession to the WTO¡± as a part of its regular work. The Center is open to the input from all parties interested to further improve the fruit of this work.