CHINA
Reported in 2022, last reported in 2023
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Domestic preferences in tenders
It is reported that under both its government procurement and tendering and bidding regimes, China continues to implement policies favouring products, services, and technologies made or developed by Chinese-owned and Chinese-controlled companies through explicit and implicit requirements. These policies hinder foreign companies from competing fairly in China. Despite China's commitment to equal treatment, foreign companies report instances where tendering documents mandate "domestic brands" and "indigenous designs." Since China has not yet established clear rules on what constitutes a "domestic product," procurement officials often prefer to err on the side of caution and purchase products from domestic Chinese companies.
Coverage Horizontal
Sources
- https://web.archive.org/web/20240330123614/https://ustr.gov/sites/default/files/2024%20NTE%20Report_1.pdf
- https://web.archive.org/web/20230919071254/https://ustr.gov/sites/default/files/2022%20National%20Trade%20Estimate%20Report%20on%20Foreign%20Trade%20Barriers.pdf
- https://web.archive.org/web/20240318070736/https://europeanchamber.oss-cn-beijing.aliyuncs.com/upload/documents/documents/European_Business_in_China_2023_2024_Position_Paper[1167].pdf
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CHINA
N/A
Pillar Public procurement of ICT goods and online services |
Sub-pillar Signatory of the World Trade Organization (WTO) Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
China is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 2002.
Coverage Horizontal
CHINA
ITA signatory?
I
II
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
0.71%
Coverage rate of zero-tariffs on ICT goods (%)
60.46%
Coverage: Digital goods
Sources
- http://wits.worldbank.org/WITS/
- 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
CHINA
Since December 2021, entry into force in January 2022
Since December 2001, entry into force in January 2002, last amended in March 2022
Since September 2000, last amended in February 2016
Since December 2001, entry into force in January 2002, last amended in March 2022
Since September 2000, last amended in February 2016
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)
Provisions on Administration of Foreign-Invested Telecommunications Enterprises (外商投资电信企业管理规定)
Telecommunications Regulations of the People’s Republic of China (中华人民共和国电信条例)
Provisions on Administration of Foreign-Invested Telecommunications Enterprises (外商投资电信企业管理规定)
Telecommunications Regulations of the People’s Republic of China (中华人民共和国电信条例)
In accordance with Special Management Measure No. 14 of the Special Administrative Measures (Negative List) for Foreign Investment Access (2021 Edition), foreign investors are prohibited from holding more than 50% equity interest in any enterprise engaged in value-added telecommunication services, with the exception of e-commerce, domestic multi-party communication services, store-and-forward services, and call centre services. Similarly, Art. 6 of the Provisions on the Administration of Foreign-Invested Telecommunications Enterprises stipulates that foreign investors may not hold more than 50% equity interest in enterprises conducting value-added telecommunication services, unless otherwise prescribed by the state. This provision was revised in 2022 to include the exception “unless otherwise prescribed by the State,” aligning with national and local regulations aimed at further relaxing restrictions on the proportion of foreign ownership in the telecommunications sector. As specified in Art. 8 of the Telecommunications Regulations, value-added telecom businesses refer to telecommunication and information services provided through public network infrastructure. These services include electronic mail, voice mailboxes, online database storage and retrieval, electronic data interchange, online data processing and transaction processing, value-added fax, internet service provision (ISP), internet content provision (ICP), and video teleconferencing.
Coverage Value-added telecom businesses
Sources
- https://web.archive.org/web/20231112132402/https://www.tjftz.gov.cn/tisip/upload/files/2022/4/TheSpecialAdministrativeMeures(NegativeList)forForeignInvestmentAccess(2021Edition).pdf
- https://web.archive.org/web/20241221220755/http://policy.mofcom.gov.cn/claw/clawContent.shtml?id=94681
- https://web.archive.org/web/20241221221810/https://www.gov.cn/gongbao/content/2016/content_5139478.htm
- https://web.archive.org/web/20241221222204/https://www1.hkexnews.hk/listedco/listconews/sehk/2023/1229/2023122900009.pdf
- https://web.archive.org/web/20241221222318/https://www.hankunlaw.com/downloadfile/newsAndInsights/54e9a18f08bfacce4745f028adff924a.pdf
- https://web.archive.org/web/20241221222455/https://www.lehmanlaw.com/resource-centre/faqs/information-technology/what-does-basic-telecom-business-and-value-added-telecom-business-refer-to.html
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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
CHILE
Reported in 2023
Pillar Online sales and transactions |
Sub-pillar Threshold for ‘De Minimis’ rule
Low de minimis threshold
It is reported that the de minimis threshold, that is the minimum value of goods below which customs do not charge duties, is USD 41, below the 200 USD threshold recommended by the International Chamber of Commerce (ICC).
Coverage Horizontal
Sources
- https://web.archive.org/web/20230930092414/https://www.aduana.cl/cuando-debo-pagar-impuestos/aduana/2018-12-12/233227.html
- https://web.archive.org/web/20230505005035/https://cooperativa.cl/noticias/economia/impuestos/sube-monto-para-comprar-en-el-extranjero-por-internet-sin-pagar-impuestos/2023-05-04/174017.html
- https://web.archive.org/web/20231003012556/https://www.aduana.cl/aduana/site/edic/base/port/normativas.html
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CHILE
Since January 2003, as amended in March 2022
Pillar Online sales and transactions |
Sub-pillar Local presence requirements for digital services providers
Labour Code (Código del Trabajo)
According to Art. 152 of Chapter X (included in September 2022 by Law No. 21,431) of the labour code of Chile, the employment contract of dependent digital platform workers shall indicate an official channel where the worker can present his/her objections, claims or requirements. The indicated channel must have a physical place of attention, a local telephone and a company representative responsible for attending to the described purposes. The law defines a digital service platform company as an entity that operates or manages a computer or technological system executable on mobile or fixed device applications for a fee.
Coverage Digital service platform companies
CHILE
Since March 1997, last amended in April 2021
Since March 2022
Since March 2022
Pillar Online sales and transactions |
Sub-pillar Framework for consumer protection applicable to online commerce
Act No. 19,496 on Consumer Protection (Ley 19.496 Establece Normas sobre la Protección de los Derechos de los Consumidores)
Regulation on Electronic Commerce (Reglamento de Comercio Electrónico)
Regulation on Electronic Commerce (Reglamento de Comercio Electrónico)
The Regulation on Electronic Commerce and the Consumer Protection Act provide a comprehensive framework for consumer protection that also applies to online transactions. According to Art. 1 of the Regulation, its purpose is to strengthen the transparency and quality of the information provided to Consumers in Electronic Commerce Platforms regarding the characteristics, essential features, price of the products and services offered and all other relevant information to encourage informed decision making, with a view to the purchase of products or services.
Coverage Horizontal
CHILE
N/A
Pillar Online sales and transactions |
Sub-pillar Ratification of the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts
Lack of signature of the UN Convention on the Use of Electronic Communications in International Contracts
Chile has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal
CHILE
N/A
Pillar Online sales and transactions |
Sub-pillar Adoption of United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce
Lack of adoption of UNCITRAL Model Law on Electronic Commerce
Chile has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal
CHILE
N/A
Pillar Online sales and transactions |
Sub-pillar Adoption of United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Chile has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal