Retail and Wholesale Sector's WTO Commitments

Limitations on market access for retailing services (excluding tobacco):
If the services are provided in the form of cross-border supply, there shall be no limitations except for mail order. If the services are provided in the form of consumption abroad, there shall be no limitations. If the services are provided in the form of commercial presence, foreign service suppliers may supply services only in forms of joint ventures in five Special Economic Zones (Shenzhen, Zhuhai, Shantou, Xiamen and Hainan) and six cities (Beijing, Shanghai, Tianjin, Guangzhou, Dalian and Qingdao).
In Beijing and Shanghai, a total of no more than four joint venture retailing enterprises are permitted respectively. In each of the other cities, no more than two joint venture retailing enterprises will be permitted. Two joint venture retailing enterprises among the four to be established in Beijing may set up their branches in the same city.

Upon China's accession to the WTO, Zhengzhou and Wuhan will be immediately open to joint venture retailing enterprises. Within two years after China's accession to the WTO, foreign majority control will be permitted in joint venture retailing.
Retailing of chemical fertilizers will be open within five years after the accession.

There shall be no limitations within three years after accession, except for: retailing of chemical fertilizers, within five years after accession; and those chain stores which sell products of different types and brands from multiple suppliers with more than 30 outlets. For such chain stores with more than 30 outlets, foreign majority ownership will not be permitted if those chain stores distribute any of the following products: motor vehicles (for a period of five years after accession at which time the equity limitation will have been eliminated), and products listed above and in Annex 2a of the Protocol of China's WTO Accession.

The foreign chain store operators will have the freedom of choice of any partner, legally established in China according to China's laws and regulations. If the services are provided in the form of presence of natural persons unbound, there shall be no commitments except as indicated in Horizontal Commitments and the contents of Horizontal Commitments are: there shall be no commitments except for measures concerning the entry and temporary stay of natural persons who fall into one of the following categories:

(a) Managers, executives and specialists defined as senior employees of a corporation of a WTO Member that has established a representative office, branch or subsidiary in the territory of the People's Republic of China, temporarily moving as intra-corporate transferees, shall be permitted entry for an initial stay of three years;

(b) Managers, executives and specialists defined as senior employees of a corporation of WTO Members, being engaged in the foreign invested enterprises in the territory of the People's Republic of China for conducting business, shall be granted a long-term stay permit as stipulated in the terms of contracts concerned or an initial stay of three years, whichever is shorter;

(c) Service salespersons---persons not based in the territory of the People's Republic of China and receiving no remuneration from a source located within China, and who are engaged in activities related to representing a service supplier for the purpose of negotiation for the sale of such services of that supplier where: such sales are not directly made to the general public and the salesperson is not engaged in supplying the service, entry for salespersons is limited to 90 days.

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