Foreign investors will be blocked from controlling Internet,
third-generation (3G) mobile and other telecommunications joint
ventures in China under the final deal struck over its accession to
the World Trade Organisation (WTO).
A formal session of the WTO's China working party will approve
Chinese membership today.
According to a briefing paper from WTO officials in Geneva:
"Foreign service suppliers will be permitted to establish joint
venture enterprises, without quantitative restrictions, and provide
services in several cities. Foreign investment in the joint venture
shall be no more than 25%."
This situation will be progressively liberalised over the next five
years. Within one year of accession, "the areas will be expanded to
include services in other cities and foreign investment shall be no
more than 35%. Within three years, foreign investment shall be no
more than 49%. And within five years of accession, there will be no
geographic restrictions."
Information on tariff levels for IT products imported into China
has yet to be released.
The treaty's general provisions include:
- With respect to the right to trade, China will provide
non-discriminatory treatment to all WTO Members. All foreign
individuals and enterprises, including those not registered in
China, will be accorded no less favourable treatment than that
accorded to Chinese enterprises.
- China will eliminate dual pricing practices, as well as
differences in treatment for goods and services produced for sale
in China and those produced for export.
- Price controls will not be used to protect domestic industries
or service providers.