CHINA
Since March 2007, entry into force in June 2007
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Adoption of the World Intellectual Property Organization (WIPO) Performances and Phonogram Treaty
WIPO Performances and Phonograms Treaty
China has ratified the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal
CHINA
Since April 2003
Since December 2015
Since December 2015
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Participation in the World Trade Organization (WTO) Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Information Technology Agreement (ITA)
ITA Expansion Agreement (ITA II)
ITA Expansion Agreement (ITA II)
China is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996 and its 2015 expansion (ITA II).
Coverage ICT goods
Sources
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
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CHINA
Since December 2001, entry into force in January 2002, last amended in April 2022
Since December 2021, entry into force in January 2022
Since December 2021, entry into force in January 2022
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Provisions on Administration of Foreign-Invested Telecommunications Enterprises (外商投资电信企业管理规定)
Special Management Measures for Foreign Investment Access (Negative List) (2021 Edition) (外商投资准入特别管理措施 (负面清单) (2021 年版)
Special Management Measures for Foreign Investment Access (Negative List) (2021 Edition) (外商投资准入特别管理措施 (负面清单) (2021 年版)
According to Art. 6 of the Provisions on Administration of Foreign-Invested Telecommunications Enterprises and Section VII of the Negative List 2021, for foreign-funded telecommunications enterprises operating value-added telecommunications services (including online database storing and searching; electronic data exchange; online data processing and transactions processing; domestic multiparty communication services; IP-VPN; ISP; ICP and video teleconferencing), the proportion of foreign investors' capital contribution in the enterprise shall not exceed 50% in the end. An exception applies to e-commerce, for which 100% foreign equity and ownership is allowed. Furthermore, the proportion of capital contribution between Chinese investors and foreign investors in foreign-invested telecommunications enterprises in different periods shall be determined by the industry and information technology department of the State Council in accordance with relevant regulations.
In addition, according to Art. 5 of the Provisions on Administration of Foreign-Invested Telecommunications Enterprises, if the enterprise is engaged in the basic telecom business within a province, autonomous region, or municipality directly under the Central Government, it shall have a registered capital of not less than 100 million yuan (approx. USD 14,000,000). However, if the enterprise is engaged in the basic telecom business nationwide or beyond a single province, autonomous region, or municipality directly under the Central Government, it shall have a registered capital of not less than 1 billion yuan (approx. USD 140,000,000).
Under the Special Management Measures for Foreign Investment Access (Negative List) 2021, authorities must treat foreign investors with the same degree of accommodation as domestic investors unless set out otherwise in the negative list. While no caps have been set out in the negative list with regard to basic telecommunication services, the negative list provides that the basic telecommunication business must be controlled by the Chinese party.
In addition, according to Art. 5 of the Provisions on Administration of Foreign-Invested Telecommunications Enterprises, if the enterprise is engaged in the basic telecom business within a province, autonomous region, or municipality directly under the Central Government, it shall have a registered capital of not less than 100 million yuan (approx. USD 14,000,000). However, if the enterprise is engaged in the basic telecom business nationwide or beyond a single province, autonomous region, or municipality directly under the Central Government, it shall have a registered capital of not less than 1 billion yuan (approx. USD 140,000,000).
Under the Special Management Measures for Foreign Investment Access (Negative List) 2021, authorities must treat foreign investors with the same degree of accommodation as domestic investors unless set out otherwise in the negative list. While no caps have been set out in the negative list with regard to basic telecommunication services, the negative list provides that the basic telecommunication business must be controlled by the Chinese party.
Coverage Basic-telecommunication services
Sources
- https://web.archive.org/web/20220924052405/http://www.gov.cn/gongbao/content/2016/content_5139480.htm
- https://web.archive.org/web/20231108181652/https://wipolex-res.wipo.int/edocs/lexdocs/laws/en/cn/cn114en.html
- https://web.archive.org/web/20220302095511/https://www.gov.cn/zhengce/zhengceku/2021-12/28/content_5664886.htm
- https://web.archive.org/web/20241122153224/https://www.gov.cn/zhengce/zhengceku/2021-12/28/5664886/files/5b1aecc9c9704b05b7a930eb6fd74e29.pdf
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CHINA
Since April 2007, extended in April 2019 until April 2024
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In April 2007, the Ministry of Commerce of the People's Republic of China announced anti-dumping duties on electrolytic capacitor paper (HS 480511, 480591) imported from Japan. This measure was revised and extended in April 2013 and then in April 2019. The rate of duty imposed ranges from 15% to 40.83%, depending on the company.
Coverage Product: Paper for electrolytic capacitor (HS 480511, 480591)
Country: Japan
Country: Japan
CHINA
Since June 2017
Since June 2017
Since May 2017
Since December 2021, entry into force in January 2022
Since June 2017
Since May 2017
Since December 2021, entry into force in January 2022
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Internet News Information Service Management Regulations (互联网新闻信息服务管理规定)
Provisions on Administrative Law Enforcement Procedures for Internet Information Content Management (互联网信息内容管理行政执法程序规定)
Provisions on the Management of Internet News Services (互利网新闻服务管理规定)
Special Management Measures for Foreign Investment Access (Negative List) (2021 Edition) (外商投资准入特别管理措施 (负面清单) (2021 年版)
Provisions on Administrative Law Enforcement Procedures for Internet Information Content Management (互联网信息内容管理行政执法程序规定)
Provisions on the Management of Internet News Services (互利网新闻服务管理规定)
Special Management Measures for Foreign Investment Access (Negative List) (2021 Edition) (外商投资准入特别管理措施 (负面清单) (2021 年版)
Internet news collecting, editing and publishing services are reserved for State media (or its controlled subsidiaries) and news media controlled by the Party news department. Private investment is expressly prohibited in news collecting and editing services.
As per the 2021 Negative List, investment in internet news services is prohibited. It also provides that the printing of publications must be controlled by the Chinese Party.
The New Regulations also provide that the Government may have a “special management share” in certain internet news providers. The Cyberspace Administration of China (CAC) does not elabourate on the meaning of the special management share. It is understood that the Government could use any special management share in an Internet News Provider to retain control over specific issues. It is unclear whether the regime would apply to all types of Internet News Providers, including privately-owned ones.
Additionally, the Provisions on the Management of Internet News Services issued by the CAC, like the old rules, ban Sino-foreign equity joint ventures, Sino-foreign cooperative joint ventures, or wholly foreign-invested enterprises from engaging in the Internet news industry. Any cooperation involving internet-based news information services and foreign-invested enterprises must be reported to the national CAC for security assessment.
The Provisions on the Management of Internet News Services also broadened the definition of “internet news information services” to “services of collecting, editing, and releasing internet news information; reposting such news information; and providing a platform to spread such news information.” They also broaden the definition of “news information” to include relevant reports and commentaries on politics, the economy, military affairs, foreign affairs, and other public affairs, as well as relevant reports and commentaries on social emergencies.
As per the 2021 Negative List, investment in internet news services is prohibited. It also provides that the printing of publications must be controlled by the Chinese Party.
The New Regulations also provide that the Government may have a “special management share” in certain internet news providers. The Cyberspace Administration of China (CAC) does not elabourate on the meaning of the special management share. It is understood that the Government could use any special management share in an Internet News Provider to retain control over specific issues. It is unclear whether the regime would apply to all types of Internet News Providers, including privately-owned ones.
Additionally, the Provisions on the Management of Internet News Services issued by the CAC, like the old rules, ban Sino-foreign equity joint ventures, Sino-foreign cooperative joint ventures, or wholly foreign-invested enterprises from engaging in the Internet news industry. Any cooperation involving internet-based news information services and foreign-invested enterprises must be reported to the national CAC for security assessment.
The Provisions on the Management of Internet News Services also broadened the definition of “internet news information services” to “services of collecting, editing, and releasing internet news information; reposting such news information; and providing a platform to spread such news information.” They also broaden the definition of “news information” to include relevant reports and commentaries on politics, the economy, military affairs, foreign affairs, and other public affairs, as well as relevant reports and commentaries on social emergencies.
Coverage Private news providers
Sources
- https://web.archive.org/web/20220127231019/https://www.lexology.com/library/detail.aspx?g=b2aa77aa-0270-40f8-9f18-ad65b6130259
- https://web.archive.org/web/20201111224928/https://www.chinalawtranslate.com/en/provisions-on-administrative-law-enforcement-procedures-for-internet-information-content-management/
- https://web.archive.org/web/20231221221634/https://chinacopyrightandmedia.wordpress.com/2017/05/02/internet-news-information-service-management-regulations-2/
- https://web.archive.org/web/20231107150741/http://www.cac.gov.cn/2017-05/02/c_1120902760.htm
- https://web.archive.org/web/20230331160532/https://www.ndrc.gov.cn/xxgk/zcfb/fzggwl/202006/P020200624549035288187.pdf
- https://web.archive.org/web/20231107150746/http://www.cac.gov.cn/2017-05/02/c_1120902931.htm
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CHINA
Since August 2014, extended in August 2020, until August 2025
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In August 2014, the Ministry of Commerce of the People's Republic of China (MOFCOM) announced anti-dumping duties on single-mode optical fibres imported from India. In August 2020, the MOFCOM reported that it would continue to impose antidumping duties for another five years. This measure was revised and extended in April 2020 for another five years. The rate of duty imposed ranges from 7.4% to 30.6%, depending on the company.
Coverage Product: Single-mode optical fibre (HS 900110, 901890)
Countries: India
Countries: India
CHINA
Since December 2021, entry into force in January 2022
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Special Management Measures for Foreign Investment Access (Negative List) (2021 Edition) (外商投资准入特别管理措施 (负面清单) (2021 年版)
Under the Negative list 2021, foreign investment in radio stations, television stations, radio and television transmission networks, radio and television satellites, satellite uplink stations, satellite receiving stations, microwave stations, internet audio-visual program services, cyberculture operations (except for music) and internet information dissemination services (except for contents opened up in China's WTO commitments) is prohibited. It is also forbidden to engage in the business of video broadcasting by order of radio and TV and the installation services of ground receiving facilities for satellite TV broadcasting.
Coverage Internet information dissemination services
CHINA
Since July 2018, until July 2025
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In July 2018, the Ministry of Commerce of the People's Republic of China (MOFCOM) announced anti-dumping duties on optical fibre preform imported from Japan and the United States. Optical fibre preforms are considered intermediary ICT goods. They are used in the production of optical fibre, which is then utilised in various ICT goods and infrastructure such as internet networks, telecommunications systems, and data centres. Imports from Japan are subject to rates ranging from 14.4% to 31.2%, while those from the United States are subject to rates between 17.4% and 41.7%.
Coverage Product: Optical fibre preform (HS 70022010)
Country: Japan, United States
Country: Japan, United States
CHINA
Since April 2015
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Foreign Investment Industrial Guidance Catalogue (as amended in 2015) (外商投资产业指导目录(2015年修订))
The 2015 Foreign Investment Industrial Guidance Catalogue explicitly prohibits foreign investment in internet publishing, including online gaming (Art. 2), thereby designating this digital content sector as off-limits to foreign capital.
Coverage Internet publishing
CHINA
Since January 2005, extended in January 2011, 2017 and 2022, until January 2027
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In January 2005, the Ministry of Commerce of the People's Republic of China announced anti-dumping duties on non-displacement single-mode optical fibres (used, for example, for long-distance telephony and multichannel television broadcasting systems) (HS code: 9001.1000) imported from Japan and South Korea. This measure was reviewed and extended in January 2011 and, subsequently, in January 2017 and January 2022. The rate of duty imposed on imports originating in Japan is 46%, while imports originating in South Korea range from 7.9% to 46%, depending on the company.
Coverage Product: Dispersion unshifted single-mode optical fibres (HS 9001.1000)
Countries: Japan, South Korea
Countries: Japan, South Korea
CHINA
Since December 2020, entry into force in January 2021
Since April 2015
Since March 2011
Since April 2015
Since March 2011
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Screening of investment and acquisitions
Measures on National Security Review of Foreign Investment (外商投资安全审查办法)
Measures for the National Security Review of Foreign Investment Pilot Free Trade Zones from the State Council General Office (国务院办公厅关于印发自由贸易试验区外商投资国家安全审查试行办法)
Circular of the General Office of the State Council on the Establishment of Security Review System Regarding Merger and Acquisition of Domestic Enterprises by Foreign Investors (国务院办公厅关于建立外国投资者并购境内企业安全审查制度的通知)
Measures for the National Security Review of Foreign Investment Pilot Free Trade Zones from the State Council General Office (国务院办公厅关于印发自由贸易试验区外商投资国家安全审查试行办法)
Circular of the General Office of the State Council on the Establishment of Security Review System Regarding Merger and Acquisition of Domestic Enterprises by Foreign Investors (国务院办公厅关于建立外国投资者并购境内企业安全审查制度的通知)
China’s national security review regime is primarily governed by the Measures on National Security Review of Foreign Investment (NSR Measures), issued on 19 December 2020 by the National Development and Reform Commission (NDRC) and MOFCOM. The NSR Measures build on earlier regulations, including the Circular of the General Office of the State Council on the Establishment of Security Review System Regarding Merger and Acquisition of Domestic Enterprises by Foreign Investors (2011 Circular) and the Measures for the National Security Review of Foreign Investment Pilot Free Trade Zones from the State Council General Office (Free Trade Zone Circular), which technically remain effective but have been rarely applied in practice.
The NSR Measures outline detailed rules for the national security review framework, managed by a Working Mechanism led by the NDRC and MOFCOM. The process consists of two stages: a General Review to assess whether a transaction requires further scrutiny, and a Special Review for a more in-depth assessment if potential national security risks are identified. According to Art. 4 of the Measures, the regime applies to foreign investments that: (i) involve control over enterprises in key sectors, such as critical infrastructure, technology, energy, and information services; or (ii) impact national security through equity acquisitions, asset purchases, or greenfield investments.
Furthermore, "control" is defined broadly, encompassing scenarios where foreign investors hold more than 50% equity, exert significant influence over operations or decision-making, or control key aspects of the business. It is reported that the NSR regime introduces clearer procedures compared to previous rules, it remains opaque regarding timelines, procedural details, and decision outcomes.
The NSR Measures outline detailed rules for the national security review framework, managed by a Working Mechanism led by the NDRC and MOFCOM. The process consists of two stages: a General Review to assess whether a transaction requires further scrutiny, and a Special Review for a more in-depth assessment if potential national security risks are identified. According to Art. 4 of the Measures, the regime applies to foreign investments that: (i) involve control over enterprises in key sectors, such as critical infrastructure, technology, energy, and information services; or (ii) impact national security through equity acquisitions, asset purchases, or greenfield investments.
Furthermore, "control" is defined broadly, encompassing scenarios where foreign investors hold more than 50% equity, exert significant influence over operations or decision-making, or control key aspects of the business. It is reported that the NSR regime introduces clearer procedures compared to previous rules, it remains opaque regarding timelines, procedural details, and decision outcomes.
Coverage Sectors related to key industries or national economic security
Sources
- https://web.archive.org/web/20230908231003/https://www.bakermckenzie.com/-/media/files/insight/publications/2021/01/foreign_investment_security_review_measures.pdf?la=en
- https://web.archive.org/web/20231206065923/https://www.chinalawtranslate.com/en/%E5%9B%BD%E5%8A%A1%E9%99%A2%E5%8A%9E%E5%85%AC%E5%8E%85%E5%85%B3%E4%BA%8E%E5%8D%B0%E5%8F%91%E8%87%AA%E7%94%B1%E8%B4%B8%E6...
- https://web.archive.org/web/20231129120714/http://english.mofcom.gov.cn/article/policyrelease/aaa/201103/20110307430493.shtml
- https://web.archive.org/web/20240229080553/http://www.mofcom.gov.cn/aarticle/b/f/201102/20110207403117.html
- https://www.lexology.com/library/detail.aspx?g=b25a3720-ed2d-4f8a-9437-db61f712d403
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CHINA
Since April 2011, extended in April 2017 and 2022, until April 2027
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In April 2011, the Ministry of Commerce of the People's Republic of China announced anti-dumping duties on non-displacement single-mode optical fibres (used, for example, for long-distance telephony and multichannel television broadcasting systems) (HS code: 9001.1000) imported from the EU and the U.S. This measure was reviewed and extended in April 2017 and, subsequently in April 2022. The duty rate on imports originating from the European Union ranges from 12.9% to 29.1%, depending on the company. The duty rate on imports originating from the United States ranges from 33.3% to 78.2%, depending on the company.
Coverage Product: Dispersion unshifted single-mode optical fibres (HS 9001.1000)
Countries: European Union, United States
Countries: European Union, United States
CHINA
Since July 2015
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Screening of investment and acquisitions
National Security Law of the People's Republic of China (中华人民国国家安全法)
According to Art. 59 of the National Security Law of the People's Republic of China, the State shall establish comprehensive systems and mechanisms for national security review and oversight. These systems shall encompass the review of foreign commercial investments, special items and technologies, internet information technology products and services, projects related to national security, and other significant activities or matters that impact or could impact national security. Art. 60 provides that central state organs shall conduct national security reviews, issue opinions, and supervise enforcement in accordance with legal and administrative regulations. Moreover, Art. 61 mandates that provinces, autonomous regions, and directly governed municipalities shall be responsible for national security review and regulation within their administrative regions, ensuring compliance with the law.
Coverage Horizontal
Sources
- https://web.archive.org/web/20230325152427/https://www.ft.com/content/5dfa8360-1fdb-11e5-aa5a-398b2169cf79
- https://web.archive.org/web/20231211125913/http://thediplomat.com/2015/07/the-truth-about-chinas-new-national-security-law/
- https://web.archive.org/web/20230202090346/http://www.xinhuanet.com//politics/2015-07/01/c_1115787097.htm
- https://web.archive.org/web/20231220170803/https://www.chinalawtranslate.com/en/2015nsl/
- https://web.archive.org/web/20231218162838/http://www.gov.cn/zhengce/2015-07/01/content_2893902.htm
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CHINA
Since January 2003, last amended in January 2014
Pillar Public procurement of ICT goods and online services |
Sub-pillar Exclusion from public procurement
Government Procurement Law of the People's Republic of China (Order of the President No. 68) (中华人民共和国政府采购法 (主席令第68号))
Art. 10 of the Government Procurement Law states that procuring entities must procure domestic goods, construction, and other services, except in one of the following situations: (i) where the goods, construction, or other services needed are not available within the territory of China or cannot be acquired on reasonable commercial terms, even if they are available in China; (ii) where the items to be procured are for use abroad; and (iii) where otherwise provided for by other laws and administrative regulations.
Moreover, the Chinese public procurement regulations actively promote a Buy Chinese policy. In principle, only Chinese companies are allowed to bid in public tenders, with foreign companies permitted only under exceptions. Government agencies and related entities are required to purchase equipment and technology from Chinese state-owned or privately-owned manufacturing companies. It is reported that public tenders often lack sufficient publicity. Furthermore, central and local entities tend to implement these provisions very broadly, exceeding the discriminations imposed by the law.
Moreover, the Chinese public procurement regulations actively promote a Buy Chinese policy. In principle, only Chinese companies are allowed to bid in public tenders, with foreign companies permitted only under exceptions. Government agencies and related entities are required to purchase equipment and technology from Chinese state-owned or privately-owned manufacturing companies. It is reported that public tenders often lack sufficient publicity. Furthermore, central and local entities tend to implement these provisions very broadly, exceeding the discriminations imposed by the law.
Coverage Horizontal
Sources
- https://web.archive.org/web/20230307183711/http://www.gov.cn/gongbao/content/2002/content_61590.htm
- https://web.archive.org/web/20240718080538/https://www.wto.org/english/tratop_e/tpr_e/s458_e.pdf
- https://web.archive.org/web/20210328030308/https://trade.ec.europa.eu/doclib/docs/2013/april/tradoc_150848.pdf
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CHINA
Since July 2014
Pillar Public procurement of ICT goods and online services |
Sub-pillar Exclusion from public procurement
Report by the National Development and Reform Commission of China and the Ministry of Finance
A report by the National Development and Reform Commission of China and the Ministry of Finance bans the purchase of certain foreign IT products for selected government procurement lists. For example, one government procurement list banned ten Apple Inc. products, including the iPad, iPad Mini, MacBook Air and MacBook Pro.
A separate procurement list includes some Apple computers that departments can continue to buy on a smaller scale, i.e. purchases totalling less than 1.2 million yuan (USD 195,000). Products from Dell Inc., Hewlett-Packard Co. and Chinese maker Lenovo Group Ltd. were included on both lists. This ban applies to all central Communist Party departments, government ministries and local governments.
A separate procurement list includes some Apple computers that departments can continue to buy on a smaller scale, i.e. purchases totalling less than 1.2 million yuan (USD 195,000). Products from Dell Inc., Hewlett-Packard Co. and Chinese maker Lenovo Group Ltd. were included on both lists. This ban applies to all central Communist Party departments, government ministries and local governments.
Coverage Apple Inc. products including the iPad, iPad Mini, MacBook Air and MacBook Pro as well as some Apple computers
Sources
- https://web.archive.org/web/20211025203953/http://www.globaltradealert.org/state-act/7494
- https://web.archive.org/web/20231202133443/http://www.bloomberg.com/news/articles/2014-08-06/china-said-to-exclude-apple-from-procurement-list
- https://web.archive.org/web/20230327041248/http://chinadigitaltimes.net/2014/08/apple-excluded-chinese-government-procurement/
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