Abiding by the WTO agreements on state trading

China has committed itself to abiding by the WTO agreement on state trading. Chinese state trading companies shall operate from commercial considerations and shall fulfill the notification obligations. China shall retain its system of state trading but at the same time non-state trading companies shall be allowed to take certain proportions of imports. In addition, China shall phase out state trading controls on vegetable oils (including soybean-oil, palm oil and colza oil) from 1 Jan 2006 onwards.

China has reserved the right of state pricing and government guidance pricing of some important products, services and public utilities, which are listed in Annex 4 to the agreement. China has also reserved the right to exercise government pricing on products such as tobacco , edible salt and pharmaceuticals , on public utilities such as gas for civil use, tap water, electricity, heating power and water supplied by irrigation works and on services such as posts and telecommunications, entrance fees for tourist sites and education services charges. Government guidance pricing will be applied to products such as grain, vegetable oil, processed oil, fertilizer, silkworm cocoons and cotton, services such as transport services charges, professional services charges, charges for commission agents ' services, charges for ranks' settlement , clearing and transmission services, the selling prices and rents of residential apartments, and health related services.