Chinese Foreign Trade Law Jiaxiang Hu Professor of Law, School of Law, SJTU

Chapter Five Regulation of Foreign Trade I. Qualifications of an Operator 1. Legal person: a registered company according Chinese company law; (1) a limited liability company (Chapter Two of Company Law) (2) a joint stock limited company (Chapter Four of Company Law)

Chapter Five Regulation of Foreign Trade 2. Other organization: any type of cooperation other than the registered companies. (1) general partnerships unlimited liabilities for all partners unlimited liabilities for all partners (2) limited liability partnerships limited liabilities for some partners limited liabilities for some partners 3. Individual: a natural person with Chinese citizenship

Chapter Five Regulation of Foreign Trade Article 8 of Foreign Trade Law The term “foreign trade business operator” as mentioned in the present Law refers to any legal person, other organization, or individual, that has handled industrial and commercial registration or other formalities for business operation and is engaged in the foreign trade business activities… The term “foreign trade business operator” as mentioned in the present Law refers to any legal person, other organization, or individual, that has handled industrial and commercial registration or other formalities for business operation and is engaged in the foreign trade business activities…

Chapter Five Regulation of Foreign Trade Article 2 of Partnership Law …“partnerships” refer to both general partnerships and limited liability partnerships, both of which are established according to this Law by natural persons, legal persons or other organizations within the territory of China. …“partnerships” refer to both general partnerships and limited liability partnerships, both of which are established according to this Law by natural persons, legal persons or other organizations within the territory of China. A general partnership is composed of general partners who bear unlimited joint liabilities for A general partnership is composed of general partners who bear unlimited joint liabilities for

Chapter Five Regulation of Foreign Trade the debts of the partnership. the debts of the partnership. A limited liability partnership is composed of general partners and limited partners, with the former bearing unlimited joint liabilities for the debts of the partnership and the latter bearing liabilities for such debts respectively A limited liability partnership is composed of general partners and limited partners, with the former bearing unlimited joint liabilities for the debts of the partnership and the latter bearing liabilities for such debts respectively within the limits of the capital contributions subscribed for. within the limits of the capital contributions subscribed for.

Chapter Five Regulation of Foreign Trade II. Change of Administrative Regulations on Market Access 1. Approval System vs Registration System The Standing Committee of the People’s Congress authorized in August of 2013 the Shanghai Free Trade Pilot Zone to suspend for three years the provisions of the following laws, which are concerned with the The Standing Committee of the People’s Congress authorized in August of 2013 the Shanghai Free Trade Pilot Zone to suspend for three years the provisions of the following laws, which are concerned with the

Chapter Five Regulation of Foreign Trade administrative approval on market access. The approval system was replaced by the registration system first in SFTPZ and later copied nationwide. administrative approval on market access. The approval system was replaced by the registration system first in SFTPZ and later copied nationwide. (1) Sino-Foreign Equity Joint Ventures Law (1) Sino-Foreign Equity Joint Ventures Law (2) Sino-Foreign Contractual Joint Venture Law (2) Sino-Foreign Contractual Joint Venture Law (3) Wholly Foreign-Owned Enterprise Law (3) Wholly Foreign-Owned Enterprise Law

Chapter Five Regulation of Foreign Trade 2. Positive List vs Negative List (1) The positive-list approach: there is no liberalization unless the host country volunteers commitments. e. g. WTO commitments (2) The negative-list approach: the host country must liberalize the market except those sectors for which it has secured reservations. e. g. the BITs signed by US

Chapter Five Regulation of Foreign Trade 3. The Shift of Approach in SFTPZ The first version of the negative list, made in 2013, covered 18 fields which included 190 special regulatory measures. The first version of the negative list, made in 2013, covered 18 fields which included 190 special regulatory measures. The second version, made in 2014, has reduced the number of special regulatory measures to 139. The second version, made in 2014, has reduced the number of special regulatory measures to 139.

Chapter Five Regulation of Foreign Trade III. The Application for Imports and Exports 1. Types of Business (1) Trading by traders themselves (2) Trading by entrustment (3) Trading by agency

Chapter Five Regulation of Foreign Trade Article 12 of Foreign Trade Law A foreign business operator may accept the entrustment of other people and handle foreign trade businesses on their behalf within its scope of business. A foreign business operator may accept the entrustment of other people and handle foreign trade businesses on their behalf within its scope of business.

Chapter Five Regulation of Foreign Trade Article 63 General Principles of Civil Law Citizens and legal persons may perform civil juristic acts through their agents. An agent shall perform civil juristic acts in the principal‘s name within the scope of the power of agency. The principal shall bear civil liability for the agent’s acts of agency… Citizens and legal persons may perform civil juristic acts through their agents. An agent shall perform civil juristic acts in the principal‘s name within the scope of the power of agency. The principal shall bear civil liability for the agent’s acts of agency…

Chapter Five Regulation of Foreign Trade 2. Procedures to apply for opening business (1) Registration for foreign trade: automatic approval (2) Department responsible for the registration: a. Administration for Industry & Commerce (for institutional registration) b. Department of Commerce (for foreign trading registration)

Chapter Five Regulation of Foreign Trade Article 9 of Foreign Trade Law Any foreign trade business operator that is engaged in the import and export of goods or technology shall be registered for archival purposes with the administrative department of foreign trade of the State Council or the institution entrusted thereby… Where any Any foreign trade business operator that is engaged in the import and export of goods or technology shall be registered for archival purposes with the administrative department of foreign trade of the State Council or the institution entrusted thereby… Where any

Chapter Five Regulation of Foreign Trade foreign trade business operator that fails to file for archival registration according to relevant provisions, the customs may not handle the procedures of customs declarations and release of the import or export goods. foreign trade business operator that fails to file for archival registration according to relevant provisions, the customs may not handle the procedures of customs declarations and release of the import or export goods.

Chapter Five Regulation of Foreign Trade Article 13 of Foreign Trade Law A foreign trade business operator shall submit to the relevant departments the documents and materials relating to its foreign trade activities in accordance to the provisions of the foreign trade department of the State Council and those of other relevant departments of the State Council… A foreign trade business operator shall submit to the relevant departments the documents and materials relating to its foreign trade activities in accordance to the provisions of the foreign trade department of the State Council and those of other relevant departments of the State Council…

Chapter Five Regulation of Foreign Trade 3. Relevant administrative departments to regulate foreign trade (1) National level: Ministry of Commerce (2) Provincial Level: Commission of Commerce, Department of Commerce (3) Local Level: Municipal Bureau of Commerce

Chapter Five Regulation of Foreign Trade Article 3 of Foreign Trade Law The administrative department of the State Council in charge of foreign trade shall take charge of the nationwide foreign trade according to the present Law. The administrative department of the State Council in charge of foreign trade shall take charge of the nationwide foreign trade according to the present Law.

Chapter Five Regulation of Foreign Trade 4. Necessary documents and materials: (1) conditions for the incorporation of a limited company (Article 23 of Company Law) a. The number of shareholders accords with the quorum; b. The amount of capital contributions paid by the shareholders reaches the statutory minimum amount of the registered capital;

Chapter Five Regulation of Foreign Trade c. The articles of association are worked out jointly by shareholders; d. The company has a name and its organization complies with that of a limited liability company; and e. The company has a domicile.

Chapter Five Regulation of Foreign Trade (2) conditions for the incorporation of a joint stock limited company (Article 77 of Company Law) a. The number of initiators meets the quorum; b. The capital share subscribed for and raised by the initiators reaches the minimum amount of the statutory capital; c. The issuance of shares and the preparatory work accord with the provisions of the law;

Chapter Five Regulation of Foreign Trade d. The articles of association are formulated by the initiators, and are adopted at the inaugural assembly if the company is to be launched by means of share offer; d. The articles of association are formulated by the initiators, and are adopted at the inaugural assembly if the company is to be launched by means of share offer; e. The company has a name, and its organization complies with that of a joint stock limited company, and f. The company has a domicile.

Chapter Five Regulation of Foreign Trade IV. Governmental Measures on the Regulation of Foreign Trade 1. General Provisions (1) Market order and State-run-trade Since the amendment of Constitution in 1993, China has practiced socialist market economy, in which the State-run enterprises are still the dominant part of national economy although other participants are allowed to enter the market. Since the amendment of Constitution in 1993, China has practiced socialist market economy, in which the State-run enterprises are still the dominant part of national economy although other participants are allowed to enter the market.

Chapter Five Regulation of Foreign Trade Article 4 of Foreign Trade Law The state practices a uniform system of foreign trade, encourages the development of foreign trade, and maintains an order of fair and free foreign trade. The state practices a uniform system of foreign trade, encourages the development of foreign trade, and maintains an order of fair and free foreign trade.

Chapter Five Regulation of Foreign Trade Article 11 of Foreign Trade Law The State may employ the administration of state-run trade to the import and export of some goods. The import and export of the goods subject to the administration of state-run trade can be managed by the authorized enterprises only, with the exception, however, of the goods, which is allowed by the state to be partially imported or exported by unauthorized enterprises… The State may employ the administration of state-run trade to the import and export of some goods. The import and export of the goods subject to the administration of state-run trade can be managed by the authorized enterprises only, with the exception, however, of the goods, which is allowed by the state to be partially imported or exported by unauthorized enterprises…

Chapter Five Regulation of Foreign Trade (2) Regulation on commodity quality Article 21 of Foreign Trade Law The state practices a uniform system of commodity quality assessment, and makes authentications, inspections, and quarantines to the import and export commodities according to the provisions of relevant laws and administrative regulations. The state practices a uniform system of commodity quality assessment, and makes authentications, inspections, and quarantines to the import and export commodities according to the provisions of relevant laws and administrative regulations.

Chapter Five Regulation of Foreign Trade (3) Regulation on customs Article 22 of Foreign Trade Law The state applies the administration system of origin to the imported and exported goods. The specific measures shall be formulated by the State Council. The state applies the administration system of origin to the imported and exported goods. The specific measures shall be formulated by the State Council.

Chapter Five Regulation of Foreign Trade (4) Regulation for public morality and human and animal health Article 23 of Foreign Trade Law With regard to cultural relics, wild animals or plants, and the products thereof, if it is restricted or prohibited by any law or administrative regulation from import or export… With regard to cultural relics, wild animals or plants, and the products thereof, if it is restricted or prohibited by any law or administrative regulation from import or export…

Chapter Five Regulation of Foreign Trade 2. Regulation on Trade in Goods (1) Tariff (commitments) (2) Non Tariff Measures a. Quotas (a) tariff quotas (b) goods quotas

Chapter Five Regulation of Foreign Trade b. Licenses (a) approved on specific conditions (b) by auction, “first come, first served” Article 15 of Foreign Trade Law The foreign trade department of the State Council may, where the monitoring of import and export so requires, employ the system of automatic license of import and export to some of the freely imported and exported goods, and publish the catalogue thereof … The foreign trade department of the State Council may, where the monitoring of import and export so requires, employ the system of automatic license of import and export to some of the freely imported and exported goods, and publish the catalogue thereof …

Chapter Five Regulation of Foreign Trade Article 19 of Foreign Trade Law The state adopts the system of quota, license, etc, to the goods subject to import or export restrictions, while adopts the system of license to the technologies restricted or prohibited from import or export. The state adopts the system of quota, license, etc, to the goods subject to import or export restrictions, while adopts the system of license to the technologies restricted or prohibited from import or export.

Chapter Five Regulation of Foreign Trade For the goods and technologies subject to the administration of quota or license, they cannot be imported or exported unless it has been approved by the foreign trade department of the State Council independently or in collaboration with other departments of the State Council. For the goods and technologies subject to the administration of quota or license, they cannot be imported or exported unless it has been approved by the foreign trade department of the State Council independently or in collaboration with other departments of the State Council. The state may practice tariff quota administration to some of the import goods. The state may practice tariff quota administration to some of the import goods.

Chapter Five Regulation of Foreign Trade Article 20 of Foreign Trade Law The quotas and tariff quotas for the import and export goods shall be distributed by the foreign trade department of the State Council or other relevant departments of the State Council within their respective duties in accordance with the principles of openness, fairness, impartiality, and efficiency. The specific measures shall be made by the State Council. The quotas and tariff quotas for the import and export goods shall be distributed by the foreign trade department of the State Council or other relevant departments of the State Council within their respective duties in accordance with the principles of openness, fairness, impartiality, and efficiency. The specific measures shall be made by the State Council.

Chapter Five Regulation of Foreign Trade (3) The Restrictions on Imports and Exports of goods and technology Article 16 of Foreign Trade Law The state may restrict or forbid the import or export of relevant goods or technology if: The state may restrict or forbid the import or export of relevant goods or technology if: (1) it is necessary to restrict or forbid the import or export for the purpose of maintaining state security, social public good or public morality; (1) it is necessary to restrict or forbid the import or export for the purpose of maintaining state security, social public good or public morality;

Chapter Five Regulation of Foreign Trade (2) it is necessary to restrict or forbid the import or export for the purpose of protecting human health or security, protecting the life or health of any animal or plant, or protecting the environment; (3) it is necessary to restrict the import or export for the purpose of implementing the measures relating to the import or export of gold or silver;

Chapter Five Regulation of Foreign Trade (4) it is necessary to restrict or forbid the export of any of the exhaustible natural resources that are in short supply or subject to effective protection; (5) it is necessary to restrict the export due to the limited market capacity of the destination country or region; (6) it is necessary to restrict the export due to the serious disorder of the export business management;

Chapter Five Regulation of Foreign Trade (7) it is necessary to restrict the import for the purpose of establishing or accelerating the establishment of a particular domestic industry; (8) it is necessary to restrict the import of any form of product in the agriculture, animal husbandry, or fishing industry;

Chapter Five Regulation of Foreign Trade (9) it is necessary to restrict the import for the purpose of safeguarding the international financial status of the state or of the international balance of payments; (10) it is necessary to restrict or forbid the import or export under any other circumstance as provided for in any other law or administrative regulation; or

Chapter Five Regulation of Foreign Trade (11) it is necessary to restrict or forbid the import or export under any other circumstance as provided for in any international treaty or agreement that China has concluded or acceded to.

Chapter Five Regulation of Foreign Trade Article 17 of Foreign Trade Law The state may, for the purpose of defending state security, take any necessary measures for managing the import and export of any matter of fission or fusion or any matter that derives such matter and the import and export of any weapon, ammunition, or any other military supply… The state may, for the purpose of defending state security, take any necessary measures for managing the import and export of any matter of fission or fusion or any matter that derives such matter and the import and export of any weapon, ammunition, or any other military supply…

Chapter Five Regulation of Foreign Trade Article 18 of Foreign Trade Law The foreign trade administrative department of the State Council may, in collaboration with any other relevant department of the State Council, formulate, adjust and publish catalogues of goods and technology restricted or forbidden from import or export according to the provisions of Article 16 or 17 of the present Law… The foreign trade administrative department of the State Council may, in collaboration with any other relevant department of the State Council, formulate, adjust and publish catalogues of goods and technology restricted or forbidden from import or export according to the provisions of Article 16 or 17 of the present Law…

Chapter Five Regulation of Foreign Trade 3. Regulation on Trade of Technology Regulation of imports and exports of technology should be in accordance with the Regulations on Technology Import and Export Administration Regulation of imports and exports of technology should be in accordance with the Regulations on Technology Import and Export Administration

Chapter Five Regulation of Foreign Trade Article 14 of Foreign Trade Law The state allows the free import and export of goods and technology, unless it is otherwise provided for by any law or administrative regulation. The state allows the free import and export of goods and technology, unless it is otherwise provided for by any law or administrative regulation.

Chapter Five Regulation of Foreign Trade 4. Regulation on Trade of Services (1) Definition of services of trade: (1) Definition of services of trade: Paragraph 3 of Article I of the GATS For the purposes of this Agreement: (b) “services” includes any service in any sector except services supplied in the exercise of governmental authority;

Chapter Five Regulation of Foreign Trade (c) “a service supplied in the exercise of governmental authority” means any service which is supplied neither on a commercial basis, nor in competition with one or more service suppliers.

Chapter Five Regulation of Foreign Trade (2) types of service a.from one country/region into another country/region; b.in the territory of one country/region to the service consumer of another country/region; c.by a service supplier of one country/region through commercial presence in the territory of another country/region;

Chapter Five Regulation of Foreign Trade d.by a service supplier of one country/region through presence of natural persons in the territory of another country/region.

Chapter Five Regulation of Foreign Trade Article 10 of Foreign Trade Law …An entity that is engaged in the overseas contracting of engineering projects or overseas labor cooperation shall have lawfully obtained corresponding competence or qualifications. The specific measures shall be formulated by the State Council. …An entity that is engaged in the overseas contracting of engineering projects or overseas labor cooperation shall have lawfully obtained corresponding competence or qualifications. The specific measures shall be formulated by the State Council.

Chapter Five Regulation of Foreign Trade Article 24 of Foreign Trade Law The People’s Republic of China opens, in accordance with its commitments made in the international treaties and agreements of international service trade that it has concluded or acceded to, its market to the other contracting parties or members and grants them with the national treatment. The People’s Republic of China opens, in accordance with its commitments made in the international treaties and agreements of international service trade that it has concluded or acceded to, its market to the other contracting parties or members and grants them with the national treatment.

Chapter Five Regulation of Foreign Trade (3) Restrictions on trade of services Article 26 of Foreign Trade Law The state may restrict or prohibit the trade of relevant international services if: The state may restrict or prohibit the trade of relevant international services if: 1. it is necessary to restrict or prohibit it for the sake of maintaining state security, social public good or public morality; 1. it is necessary to restrict or prohibit it for the sake of maintaining state security, social public good or public morality;

Chapter Five Regulation of Foreign Trade 2. it is necessary to restrict or prohibit it for the purpose of protecting human health or security, protecting the life or health of any animal or plant, or protecting the environment; 3. it is necessary to restrict it for the purpose of establishing or accelerating the establishment of a certain domestic service industry;

Chapter Five Regulation of Foreign Trade 4. it is necessary to restrict it for the purpose of ensuring the balance of international payments of the state; 5. it is necessary to restrict or prohibit it for any other reason as provided for in any law or administrative regulation; or 6. it is necessary to restrict or prohibit it for any other reason as provided for in any international treaty or agreement that China has concluded or acceded to.

Chapter Five Regulation of Foreign Trade Article 27 of Foreign Trade Law …When in war or for keeping international peace and security, the state may take any necessary measures regarding the international service trade. …When in war or for keeping international peace and security, the state may take any necessary measures regarding the international service trade.

Chapter Five Regulation of Foreign Trade Article 28 of Foreign Trade Law The foreign trade department of the State Council formulates, adjusts, and publishes, in collaboration with other relevant departments of the State Council, market entry catalogues of the international service trade… The foreign trade department of the State Council formulates, adjusts, and publishes, in collaboration with other relevant departments of the State Council, market entry catalogues of the international service trade…

Chapter Five Regulation of Foreign Trade V. Obligations Observed As a WTO Member in the Regulation of Foreign Trade 1. Background: the GATT and the Major Achievements of the Uruguay Round Negotiations (1) The proposed institutions under the “Bretton Woods System”

Chapter Five Regulation of Foreign Trade a. International Monetary Fund (IMF); b. World Bank; c. International Trade Organization (ITO).

Chapter Five Regulation of Foreign Trade (2) Eight rounds of multilateral negotiations under the GATT Round Dates Number of participants Geneva Annecy Torquay Geneva

Chapter Five Regulation of Foreign Trade Dillion Kennedy Tokyo Uruguay

Chapter Five Regulation of Foreign Trade (3) Major achievements of the Uruguay Round negotiations a. Market Access there is an impressive reduction of quotas as well as substantial tariff-cutting there is an impressive reduction of quotas as well as substantial tariff-cutting the remaining quotas will be changed into tariffs the remaining quotas will be changed into tariffs

Chapter Five Regulation of Foreign Trade b. Progressive Liberalisation the largest number of countries in history made significant trade liberalization commitments in goods the largest number of countries in history made significant trade liberalization commitments in goods they have also agreed: they have also agreed: to expand the scope of their trade in services to expand the scope of their trade in services to ensure the protection of trade-related intellectual property rights to ensure the protection of trade-related intellectual property rights

Chapter Five Regulation of Foreign Trade to reintegrate textiles and apparel into the GATT system to reintegrate textiles and apparel into the GATT system to start the process of liberalization in agriculture to start the process of liberalization in agriculture

Chapter Five Regulation of Foreign Trade c. A More Transparent Market The participating countries aimed at phasing out all the “voluntary export restraint agreements” which were prevalent before the Uruguay Round in industries such as steel, electronic products and motor vehicles, the so- called grey-area practice whereby one country agrees to limit its exports to another country to a pre-set level. The participating countries aimed at phasing out all the “voluntary export restraint agreements” which were prevalent before the Uruguay Round in industries such as steel, electronic products and motor vehicles, the so- called grey-area practice whereby one country agrees to limit its exports to another country to a pre-set level.

Chapter Five Regulation of Foreign Trade d. A New Regulating Institution The establishment of the World Trade Organisation is one of the most important events in post-war period and the increasing number of accession signify that the new institution is attracting more and more countries to join. The establishment of the World Trade Organisation is one of the most important events in post-war period and the increasing number of accession signify that the new institution is attracting more and more countries to join.

Chapter Five Regulation of Foreign Trade e. A Unified Dispute Settlement Mechanism The Dispute Settlement Body equipped with the Understanding on Rules and Procedures Governing the Settlement of Disputes (Dispute Settlement Understanding or DSU) will provide a place to settle the disputes among WTO Members. The Dispute Settlement Body equipped with the Understanding on Rules and Procedures Governing the Settlement of Disputes (Dispute Settlement Understanding or DSU) will provide a place to settle the disputes among WTO Members.

Chapter Five Regulation of Foreign Trade 2. Basic Differences between the GATT and WTO (1)Objectives Preamble of GATT 1947 Preamble of GATT 1947 Recognizing that their relations in the field of trade and economic endeavour should be…developing the full use of the resources of the world and expanding the production and exchange of goods. Recognizing that their relations in the field of trade and economic endeavour should be…developing the full use of the resources of the world and expanding the production and exchange of goods.

Chapter Five Regulation of Foreign Trade Preamble of WTO Agreement Preamble of WTO Agreement Recognizing that their relations in the field of trade and economic endeavour should…while allowing for the optimal use of the world's resources in accordance with the objective of sustainable development… Recognizing that their relations in the field of trade and economic endeavour should…while allowing for the optimal use of the world's resources in accordance with the objective of sustainable development…

Chapter Five Regulation of Foreign Trade (2)Legal status Article VIII of the WTO Agreement 1.The WTO shall have legal personality, and shall be accorded by each of its Members such legal capacity as may be necessary for the exercise of its functions. 1.The WTO shall have legal personality, and shall be accorded by each of its Members such legal capacity as may be necessary for the exercise of its functions.

Chapter Five Regulation of Foreign Trade (3)Mandates Article III of the WTO Agreement 1.The WTO shall facilitate…of this Agreement and of the Multilateral Trade Agreements, and shall also provide the framework for…of the Plurilateral Trade Agreements. 1.The WTO shall facilitate…of this Agreement and of the Multilateral Trade Agreements, and shall also provide the framework for…of the Plurilateral Trade Agreements.

Chapter Five Regulation of Foreign Trade 2.The WTO shall provide the forum for negotiations among its Members…The WTO may also provide a forum for further negotiations among its Members… 2.The WTO shall provide the forum for negotiations among its Members…The WTO may also provide a forum for further negotiations among its Members… 3.The WTO shall administer the Understanding on Rules and Procedures Governing the Settlement of Disputes… 3.The WTO shall administer the Understanding on Rules and Procedures Governing the Settlement of Disputes…

Chapter Five Regulation of Foreign Trade 4.The WTO shall administer the Trade Policy Review Mechanism… 4.The WTO shall administer the Trade Policy Review Mechanism… 5. …the WTO shall cooperate, as appropriate, with the International Monetary Fund and with the International Bank for Reconstruction and Development and its affiliated agencies. 5. …the WTO shall cooperate, as appropriate, with the International Monetary Fund and with the International Bank for Reconstruction and Development and its affiliated agencies.

Chapter Five Regulation of Foreign Trade (4)Binding effect Article II of the WTO Agreement 2.The agreements and associated legal instruments included in Annexes 1, 2 and 3 (hereinafter referred to as "Multilateral Trade Agreements") are integral parts of this Agreement, binding on all Members. 2.The agreements and associated legal instruments included in Annexes 1, 2 and 3 (hereinafter referred to as "Multilateral Trade Agreements") are integral parts of this Agreement, binding on all Members.

Chapter Five Regulation of Foreign Trade (5)Conceptual shift GATT 1947 GATT 1947 GATT 1994 GATT 1994

Chapter Five Regulation of Foreign Trade 3. The Obligations of the WTO Members Paragraph 4 of the WTO Agreement 4.Each Member shall ensure the conformity of its laws, regulations and administrative procedures with its obligations as provided in the annexed Agreements. 4.Each Member shall ensure the conformity of its laws, regulations and administrative procedures with its obligations as provided in the annexed Agreements.

Chapter Five Regulation of Foreign Trade Questions for Discussion Questions for Discussion Question One Question One Who are the qualified operators to do foreign trade in China? Who are the qualified operators to do foreign trade in China? Question Two Question Two What is the difference between the positive list and the negative list on the market access? What is the difference between the positive list and the negative list on the market access?

Chapter Five Regulation of Foreign Trade Question Three Question Three How many types of business to do foreign trade in China, and what are they? How many types of business to do foreign trade in China, and what are they? Question Four Question Four What are the relevant administrative departments to regulate foreign trade? What are the relevant administrative departments to regulate foreign trade?

Chapter Five Regulation of Foreign Trade Question Five Question Five How do you understand the term “socialist market economy” stipulated in Chinese Constitution? How do you understand the term “socialist market economy” stipulated in Chinese Constitution? Question Six Question Six What are the non-tariff measures usually taken by the importing nations? What are the non-tariff measures usually taken by the importing nations?

Chapter Five Regulation of Foreign Trade Question Seven Question Seven What is the definition of service in the GATS? What is the definition of service in the GATS? Question Eight Question Eight What are the differences between the GATT and WTO? What are the differences between the GATT and WTO?