Shi Briefed Lamy on China's Preparatory Work

China Busy Revising Laws to Adapt to New Situation

Highlights of the EU-China Agreement on WTO Telecommunications The timetable for market opening in mobile telephony has been accelerated by 2 years. Foreign investment will be allowed at 25% on accession, 35% after 1 year and 49% after 3 years. For mobile and fixed services, traffic between cities as well as within them will be open. China will open up its leasing market in 3 years, allowing foreign firms to rent capacity from Chinese operators and resell it domestically and internationally (private leased circuits & closed user groups). Insurance Effective management control has been negotiated for foreign participants in life insurance joint ventures, through choice of partner, and a legal guarantee of freedom from any regulatory interference in private contracts on a 50-50 equity basis. China will immediately give 7 new licences to European insurers, in both the life and non-life sectors. And 2 EU firms will be permitted to establish in 2 new cities. Scope of insurance business will be expanded for foreign companies two years faster than foreseen in the Sino-US Agreement. Tariffs China has reduced import tariffs on over 150 leading European exports - such as machinery, ceramics and glass, textiles, clothing, footwear and leather goods, cosmetics and spirits. Agreed levels are generally around 8-10%. Motor vehicles European carmakers are well established in China, and will have greater flexibility to choose which types of vehicles they build. Approval thresholds of provincial authorities will be raised from $30m to $150m. Agriculture Market access will improve for key EU products, such as rape-seed oil, dairy products, pasta, wine and olives. An EU-China sanitary and phytosanitary agreement will ensure China's application of the WTO SPS Agreement, and resolve a number of bilateral issues. For More China's WTO Bid