Distribution services


Wholesale distribution services

No later than 11 December 2002, foreign service suppliers will be permitted to establish joint ventures and engage in the wholesale business of imported and domestically produced products. For books, newspapers, magazines, pharmaceutical products, pesticides and mulching film, the date is set at 11 December 2004. For chemical fertilizers, processed oil and crude oil that date is 11 December 2006.

No later than 11 December 2003, foreign majority ownership will be permitted and no geographic or quantitative restrictions will apply. As of 11 December 2004 all restrictions on equity and form of establishment should be abolished (except for chemical fertilizers, processed oil and crude oil for which the date is set at 11 December 2006).

Retail services

Upon accession foreign service suppliers will be permitted to participate in joint ventures in major cities and the five Special Economic Zones. As from 11 December 2004 there will be no geographic or quantitative restrictions or restrictions concerning equity or form of establishment. There are specific rules, however, for chain stores with more than 30 outlets.

The retail market is one of the sectors where the impact of WTO accession is expected to be greatest. That does not necessarily mean that it will be easy to enter the market. The experience of foreign retail chains like the French Carrefour and the US company Wal- mart is that Chinese domestic retail enterprises have woken up and are actively competing through mergers, acquisitions and reorganization. It also takes time for foreign retailers to get the necessary approvals for new stores from the central government. Carrefour was recently sanctioned for opening stores without the required central government permission.




Doing Business with China
Doing Business with China
ISBN: 1905050089
EAN: 2147483647
Year: 2003
Pages: 648
Authors: Lord Brittan

flylib.com © 2008-2017.
If you may any questions please contact us: flylib@qtcs.net