 
  WORLD TRADE  
ORGANIZATION  G/L/708/Corr.11 
17 November 2004 
 (04-4957) 
Committee on Trade-Related Investment Measures  
  
 
TRANSITIONAL REVIEW MECHANISM PURSUANT TO PARAGRAPH 18 OF THE 
PROTOCOL OF ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA TO THE 
WORLD TRADE ORGANIZATION 
 
REPORT OF THE CHAIRMAN 
 
Corrigendum
 
 
 
Annex 1, paragraph 20  
 
 The paragraph should be replaced by the following text:   "Before replying to the specific questions ra ised by Members, the representative of China
 said 
that written questions should be submitted to China at least ten days before the meeting in which the 
TRM would take place.  This would enable Chin a to have adequate time to mobilize domestic 
resources to prepare for the responses.  He said that his delegation had never received written 
questions from Chinese Taipei.  He then proceeded to provide oral responses to the questions raised 
by Members.  First of all, he reiterated that Ch ina had fully abided by its TRIMs commitments and 
obligations upon its accession, and that it had a bolished the requirements on foreign exchange 
balance, trade balance, local content and export perfo rmance.  However, with regard to all the existing 
commercial contracts on joint venture operation and technology transfer, since they had been signed 
by the relevant parties in consideration of thei r own business interests, the parties involved should 
negotiate about the amendment of those contracts themselves on the basis of fairness, justice and 
equality.  The contracts should not be regarded as i nvalid automatically or be annulled through or by 
government actions or interference.  Regarding the Industrial Guideline Catalogue for Foreign 
Investment , he said that as all Members knew, the catal ogue currently in effect had been publicized 
and implemented after am endment in March 2002.  With the ra pid development of China’s national 
economy and society since then, and in order to m eet the needs of further opening up, China would 
amend its Industrial Guideline Catalo gue for Foreign Investment from time to time as appropriate.  
The aim of establishing and implementing the Industrial Guideline Catalogue for Foreign Investment  
was to further the guidance on foreign investment and to direct it to closely follow up the rapid 
development of China’s national economy  and society.  Consistent with The Regulation on Foreign 
Investment guidance , foreign investment projects that endangered the national security or imperil 
social and public interests should be prohibited.  Upon its accession to the WTO, China had made no 
promise to open up the ten presently prohibited types of projects to foreign investment.  Among those, 
in the fields of "agriculture, forestry and fisher y", there were three types of projects prohibited to 
foreign investment, with "production and development of genetically modified plants seeds" included 
as one of them.  However, bio-technology seed development and production was not included among 
the three." 
 
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1 In English only. 