Implementing the agreement on trade-related investment measures

Implementing the agreement on trade- related investment measures

China has committed to implementing the Agreement on Trade-related Investment Measures after its accession to the WTO and eliminating trade-related investment measures such as foreign-exchange balancing and trade balancing requirements, local content or technology transfer requirements and export performance requirements. China has committed, according to the common practice of most WTO members , to not enforcing mandatory provisions on export performance in laws, regulations and rules. Such provisions in contracts shall be the result of commercial negotiations.

Following China's accession to the WTO, China's legislative authorities have revised the three basic laws governing foreign direct investment, the Law on Chinese-foreign Equity Joint Ventures, the Law on Chinese-Foreign Contractual Joint Ventures and the Law on Wholly Foreign-owned Enterprises . Their detailed rules of implementation have also been revised accordingly . The revisions have been made on the articles relating to balance of foreign exchange, local content, export performance and the filing of enterprises' production plans. China has unified the turnover tax system for both Chinese and foreign-invested enterprises, removed the collection of high charges on foreign- invested enterprises and eliminated the dual charge standards on foreigners' purchase of plane tickets, bus, train or steamer tickets, entrance tickets and fees on public utilities. In addition, the Catalogue of Industries for the Guidance of Foreign Investment and a new policy for the automobile industry have been published.