Shanghai¡¯s Social & Economic Development in Relation to China¡¯s Accession to the WTO(2004)
Shanghai WTO Affairs Consultation Center
Report on Shanghai¡¯s Social & Economic Development in Relation to China¡¯s Accession to the WTO
Director of the Editorial Board WANG Zhan
Vice Directors of the Editorial Board WANG Xinkui JIAN Heping
Chief Editor WANG Xinkui
Vice Chief Editor SUN Fuqing
Members of the Editorial Board£¨listed in numerical order of the strokes contained in Chinese surnames£©
FENG Jun SUN Fuqing LI Yueyin
CHENG Shuaihua YAO Weiqun GAO Yongfu
GUO Ai¡¯jun Gong Baihua FANG Yongming
Copy Writers GUO Ai¡¯jun CHENG Shuaihua
Proofreader SUN Fuqing
Approved by WANG Xinkui
Foreword
Year 2004 marked the third year of China¡¯s accession to the WTO. While making concerted efforts to comply with its WTO commitments, China has also played an active role in international division of labor and international cooperation. As a result, it not only contributed to the recovery of the world economy, but also enjoyed unprecedented growth itself, as evidenced by the stable rise of imports and exports, improvement of the quantity and quality of foreign investment, and enhancement of investment structure and consumer product quality. Practices have shown again that joining the WTO is an important decision of strategic significance for China in its move to become fully integrated with the global economy and to ensure it achieves strong and sustainable growth of the national economy. Joining the WTO has played an increasingly prominent role in driving the transition from planned centralized economy to socialist market economy
Year 2004 was also the crucial year for China to enter the post-transitional period in implementation of WTO commitments. China will be confronted with an even more complex economic environment. In terms of trading environment, other WTO members have all started to use the four transitional arrangements that are not in China¡¯s interest. In terms of WTO rules, in 2004, China fulfilled its commitments and removed the examination and approval system for trading rights and granted full trading rights to foreign-owned businesses. This removal shall exert profound impact on China¡¯s basic trading system. In terms of trade in goods, over a three-year period starting in 2004, China shall remove tariff quota controls on most agricultural products with a single exception-chemical fertilizer. Meanwhile, starting January 1 2005, developed countries shall eliminate all quotas on export of Chinese textile products as required in the Multi-Fiber Agreement. In terms of market access for trade in services, before 2007, China shall remove all the geographical and customer restrictions for information, financial and tourist services. In addition, China shall make new commitments in the Doha round negotiations.
Changes in the external environment shall present both challenges and opportunities for the Chinese economy. In the field of trade in goods, the lowering of trade and non-tariff trade barriers under WTO framework has promoted the strong surge of import and export in China. At the same time, it has also triggered an increasing trend of protectionism against China. In the field of trade in services, China has implemented all the commitments made in the Protocol according to the Schedule, and has opened the insurance and tourist services ahead of schedule. However, there still remain some differences between China and other major developed WTO members on the interpretation and use of prudential carve-out in the market access of financial services. In the field of trading system, China has done its utmost to comb through and remedy laws, rules and measure relevant to the WTO. However it will be a long time before there exists a consistent enforcement of the trading system and smooth resolution of disputes with other developed WTO members.
Shanghai is the economic capital of China, as well as a showcase of China¡¯s opening up. Since China¡¯s accession to the WTO, Shanghai has taken a lead to embrace the opportunities and challenges. In 2004, Shanghai enjoyed a rapid and stable economic growth. It has also made remarkable progress in raising its market access for trade in goods and services, making reasonable use of trade remedies, standardizing technical measures to trade, and promoting trade facilitation. Shanghai has become a focal point for major WTO members to observe and assess China¡¯s WTO compliance.
As a key step to improve the transparency of WTO compliance efforts by the Shanghai Municipal Government, every year the Shanghai WTO Affairs Consultation Center (SCC/WTO) publishes this report in Chinese and English entitled ¡°Shanghai¡¯s Social & Economic Development in Relation to China¡¯s Accession to the WTO¡± In consideration of China¡¯s imminent entry into the post-transitional period, this year¡¯s annual report reviews the progress Shanghai has made over the past three years meeting the commitments the Chinese government has made to the WTO including: government administration, market access, protection of intellectual property rights, technical measures to trade, trade facilitation, trade in goods and main service industries. And. The purpose of this report is to fully reflect Shanghai¡¯s compliance with WTO commitments and the impact on Shanghai¡¯s social and economic development. The report is published in the Chinese and English version.
The Shanghai WTO Affairs Consultation Center is a non-governmental organization led by the Joint Meeting of WTO Affairs of the Shanghai Municipal Government. SCC/WTO offers a vast array of services to government or businesses in addition to providing training of WTO-related professionals and WTO-related information. It also offers legal advice or consultancy, monitors and issue early warning on trade remedies, and acts as a primary liaison between governments, businesses, trade associations, and research institutes of major WTO members as well as 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. We are ready to work with all parties interested in doing a better job in this regard.
President
Shanghai WTO Affairs Consultation Center
WANG Xinkui
December 2004
Table of Contents
Foreword WANG Xinkui
Chapter 1 Shanghai¡¯s Economic & Social Achievements after 3 years¡¯ WTO Membership
I Macro Economic Performance
II Growth of Foreign Trade and Attraction of Foreign Investment
III Implementation of WTO Commitments and Construction of Trading Systems
Chapter 2 New Circumstances and Strategic Considerations after 3 years¡¯ WTO Accession
I Features of the Post-Transitional Period after WTO Accession
II Challenges and Opportunities in the Post-Transitional Period after WTO Accession
III Strategic Considerations in the New Circumstances
Chapter 3 Transparency in the Government and Reforms in the Administrative Regime
I. WTO¡¯s Transparency Principle and the Strive for an Open Government
II. The Implementation of the Administrative Licensing Law in Normalizing Government Conduct
III. The Implementation of the State Council¡¯s Enforcement Guidelines in Promoting Rule-based Government
Chapter 4 Reforms in the Judicial Regime
II. The Improvement of Judicial Equity
IV. The Improvement of Administrative Litigation Regime in Building a Rule-based Government
Chapter 5 The Normalization of Market Supervision and Administration
I. Establishing a WTO-compatible Market Access Mechanism Through Reforming the Registration Regime
II. Transforming Administrative Functions According to the Law to Better Regulate the Market
V. Building a Better Team in the Shanghai Administration of Industry and Commerce
Chapter 6 The Promotion of Fair Trade
I. Current Situations of Fair Trade in Shanghai
II. Measures Adopted by Shanghai to Promote Fair Trade
III. The Active Role of the Shanghai WTO Affairs Consultation Center in Promoting Fair Trade
IV. Favorable and Unfavorable Factors in the Promotion of Fair Trade in Shanghai
Chapter 7 The Protection of Intellectual property
I. China¡¯s Implementation of Its Promises of Protecting Intellectual property after Its Accession to WTO
II. The Making and Implementation of Laws and Policies of Intellectual property in Shanghai
III. The Situation of Intellectual Property Protection
IV. IPR Propaganda and popularization and specialized training
V. Progress in Enterprise Patents
VI. The International Cooperation and Exchange in IPR Protection
Chapter 8 National Treatment
I. Measures Taken by the Chinese Government in Implementing National Treatment Commitment
II. Active Implementation of National Treatment Commitment by Shanghai
Chapter 9 Trade-related Technical Measures
I. China¡¯s Implementation of Trade-related Technical Measures
II. The Implementation of Trade-related Technical Measures in Shanghai
IV. Full Implementation of TBT and SPS Agreements in Entry and Exit Inspection and Quarantine
Chapter 10 The Development of Trade Associations and Intermediary Organizations
I. The Development of Trade Associations and Intermediary Organizations in Shanghai
II. Measures for Promoting the Development and Reform of Trade Associations in Shanghai
III. The Measures to Speed Up the Development and Reform of Intermediary Organizations in Shanghai
IV. Main Achievements in the Development of Trade Associations and Intermediary Organizations
Chapter 11 Trade Facilitation
¢ñPushing Forward the Establishment of the Electronic Port
¢ò Propelling the Easy Clearance System
¢ó Enhancing the Transparency of Customs Legal Enforcement
IV Customs Valuation
V Customs Protection of Intellectual Property Rights
Chapter 12 The Automotive Industry
Chapter 13 The Pharmaceutical Industry
Chapter 14 The Steel Industry
Chapter 15 The IT Industry
Chapter 16 The Textile Industry
Chapter 17 The Construction and Real Estate Industry
Chapter 18 Financial Services
Chapter 19 Cultural, Radio, Film and TV Services
Chapter 20 Educational Services
Chapter 21 Travel Industry
Chapter 22 Management Consulting Services
Chapter 23 Accounting Services
Chapter 24 Legal Services
Chapter 25 Trade and Distribution
Chapter 26 Telecommunication Services
Postscript