Value-Added and Paging Services

• The commitments in China’s services schedule on value-added telecommunications services include electronic mail, voice mail, on-line information and database retrieval, electronic data interchange, enhanced/value-added facsimile services (including store and forward, store and retrieve), code and protocol conversion, and on-line information and/or data processing (including transaction processing).

• Foreign suppliers may provide value-added and paging telecommunications services through joint venture enterprises, without quantitative restrictions. Foreign investment in a joint venture may not exceed 30 percent. By December 11, 2002, foreign investment may be increased to a maximum of 49 percent. By December 11, 2003, maximum foreign investment may be no more than 50 percent.  

• Joint ventures may provide value-added and paging telecommunications services in and between Beijing, Shanghai and Guangzhou.  By December 11, 2002, joint ventures may provide these telecommunications services in and between Chengdu, Chongqing, Dalian, Fuzhou, Hangzhou, Nanjing, Ningbo, Qingdao, Shenyang, Shenzhen, Xiamen, Xi’an, Taiyuan and Wuhan.  By December 11, 2003, geographic restrictions will be lifted for value-added and paging telecommunications services.

• The commitments in China’s services schedule on mobile voice and data services include analogue and digital cellular services and personal communications services.

• Foreign suppliers may provide mobile voice and data services through joint venture enterprises, without quantitative restrictions. Foreign investment in a joint venture may not exceed 25 percent. By December 11, 2002, foreign investment may be increased to a maximum of 35 percent. By December 12, 2003, maximum foreign investment may be no more than 49 percent.

• Joint ventures may provide mobile voice and data services in and between Beijing, Shanghai and Guangzhou.  By December 11, 2002, joint ventures may provide mobile voice and data services in and between Chengdu, Chongqing, Dalian, Fuzhou, Hangzhou, Nanjing, Ningbo, Qingdao, Shenyang, Shenzhen, Xiamen, Xi’an, Taiyuan and Wuhan. By December 11, 2006, geographic restrictions will be lifted for mobile voice and data services.

• Fixed line services include both domestic and international telecommunications services. The commitments in China’s services schedule on these services include voice services, packet-switched data transmission services, circuit-switched data transmission services, facsimile services, domestic private leased circuit services, and international closed user group voice and data services (including use of private leased circuit services).

• By December 11, 2004, foreign suppliers may provide fixed line services through joint venture enterprises, without quantitative restrictions. Foreign investment in a joint venture may not exceed 25 percent. By December 11, 2006, foreign investment may be increased to a maximum of 35 percent. By December 11, 2007, maximum foreign investment may be no more than 49 percent.  

• By December 11, 2004, joint ventures may provide fixed line services in and between Beijing, Shanghai and Guangzhou. By December 11, 2006, joint ventures may provide domestic services in and between Chengdu, Chongqing, Dalian, Fuzhou, Hangzhou, Nanjing, Ningbo, Qingdao, Shenyang, Shenzhen, Xiamen, Xi’an, Taiyuan and Wuhan.  By December 11, 2007, geographic restrictions will be lifted for fixed line services services.

• Managers, executives and specialists of a representative office, branch or subsidiary in China, temporarily moving as intra-corporate transferees, will be permitted an initial stay of three years.

• Managers, executives, and specialists of foreign-invested enterprises in China will 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.

• Service salespersons who are not based in China, and who meet certain other conditions set forth in China’s services schedule, are limited to a 90-day stay. 

• Restrictions on the cross-border supply of telecommunications services are the same as those listed above for the commercial presence in China.

• The conditions of ownership, operation and scope of activities for an existing foreign service supplier, as set out in the supplier’s contract or shareholders’ agreement or in a license establishing or authorizing the supplier’s operation or supply of services, will not be made more restrictive than they were on December 11, 2001.  

• China has committed to observe the Reference Paper drawn up by the WTO Negotiating Group on Basic Telecommunications, which calls for (1) the establishment of independent regulators, (2) the adoption of competitive safeguards, (3) measures to ensure inter-connectivity, (4) transparent and non-discriminatory practices with regard to licensing, and (5) universal service obligations.