CHINA UNIFORMLAW NET

Highlights of China-U.S. WTO accord  

Following are highlights of today's agreement between China and the United States paving the way for China's entry into the World Trade Organization (WTO), as stated by U.S. officials. 

AVERAGE TARIFF LEVELS: China agreed to cut its average tariff level to 17 percent from 22.1 percent. 

TELECOMMUNICATIONS: China will allow 49 percent investment by foreign telecom providers from the date of accession, with the figure increasing to 50 percent after two years. 

INTERNET: U.S. companies will be allowed to invest in Chinese Internet content providers. 

AUTOS: China will cut its import tariffs on automobiles to 25 percent from current levels of between 80 percent and 100 percent by 2006. U.S. firms will be allowed to provide auto financing in China. 

BANKING: Foreign banks will be able to conduct local currency business with Chinese enterprises two years after China's WTO entry and retail business five years after entry. 

AGRICULTURE: China agreed to cut import tariffs on agricultural products to between 14.5 percent and 15 percent and establish tariff rate quotas for wheat, corn, rice and cotton, with a substantial share reserved for private trade. China also agreed to phase out state trading of soy oil. 

EXPORT SUBSIDIES: China will eliminate export subsidies. 

DISTRIBUTION: China will allow distribution rights for U.S. exporters.  

Demands on China

A U.S. statement said China agreed to reduce its average import duties to 17 percent from 22.1 percent. Export subsidies will be eliminated and tariffs on farm goods will come down.

     U.S. firms will be granted access to China’s distribution networks, and auto companies will be permitted to offer vehicle financing. In addition, Washington has demanded that China submit to quotas on textile shipments and anti-dumping measures to prevent surges in low-cost exports.