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What WTO Entry Will Do and What It Won't
for China
- What WTO Entry Will Do...
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- Overall
- China will lower average tariffs from 15% to
9% and eliminate almost all import quotas and discrimination
against foreign companies by 2005.
- Info Tech
- Imports of computers, telecom equipment, and
semiconductors will be duty-free by 2005. Foreign companies
no longer will be forced to transfer technology to local ventures.
- Agriculture
- China will import millions of tons of grain,
cotton, and soybean oil under a 1% tariff. Beyond that, tariffs
on farm goods will fall from 22% to 17.5%; export subsidies
will be eliminated.
- Telecom
- Foreign companies can invest directly in phone
and Internet services, whether delivered by cable, wireless
systems, or satellite.
- Banking
- Foreign banks will be able to operate anywhere
in the country by 2005 and take deposits and make loans in
local currencies to any person or company.
- Distribution
- Within three years, most geographic and ownership
curbs will be dropped in both retail and wholesale.
- Services
- Foreign accounting, legal, engineering, management
consulting, and medical service outfits will be able to have
majority ownership.
- What It Won't...
-
- Telecom Services
- Foreigners still would be barred from
owning majority control of long-distance, cellular, Internet,
and other service ventures.
- Intellectual Property
- Although China must abide by world intellectual
property protection rules, piracy will be rife because the
backward legal system will make enforcement difficult.
- Insurance
- Foreign ownership of insurance ventures
will be limited to 50%, and limited to 49% for securities
and fund management firms.
- Entertainment
- Sharp limits on foreign films will remain,
with up to 20 allowed each year. Foreign ownership of film
distribution and movie theater ventures will be limited to
49%.
Data: Office of the U.S. Trade Representative, Brookings Institution
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