What are the hot issues from Member's 2562 questions?
Under WTO agreements:
China's implementation of WTO TFA;
consistency of its Cyberseucity law with GATS;
disclosure of info in IPR cases as per TRIPS requirements.
Questions beyond WTO rules:
China to further open up the market, relax restrictions on foreign investment access, reduce the negative list of foreign investment, and promote the innovation of the pilot free trade zone system to be replicated and promoted throughout the country.
There were also concerns on China's dual circulation strategy and forced tech transfer.
China on subsidies: 1. agricultural subsidies must be discussed simultaneously with industrial subsidies 2. discuss tightening trade remedy disciplines such as anti-subsidy and anti-dumping to solve the current abuse of trade remedy measures 3. restoring non-actionable subsidies
On developing country status:
China didn't get SDT in its accession, and have assumed obligations beyond normally required of developing countries since becoming a member, like in TFA & ITA, as I discussed with @WeihuanZhou at theconversation.com/myth-busted-ch…
On investment restriction:
The issue is beyond WTO but China is willing to deal with this issue through FTAs and BITs. For example, China has filed application to join the CPTPP. CPTPP has high standards for investment, and China is willing to deal with it through these channels.
Again, this confirms my observation in this op-ed with @WeihuanZhou last month, that China is serious about its CPTPP application and is willing to make meaningful concessions to get in. asia.nikkei.com/Opinion/China-…
On fisheries subsidies:
China issued document in May removing fuel subsidies.
On criticisms on China's trade policy during the TPR:
There are 2 types of comments: 1. those covered by WTO rules, which China will take seriously and fulfill them, 2. those beyond WTO rules, which are unfair, unreasonable, and unacceptable for China.
On China's alleged non-market trade practice and gov't intervention which resulted in overcapacity and market distortion:
Need to go back to the basics. What is the basics? It is China's Constitution, which states in Article 15 that China implements a socialist market economy.
From 2018 to 2020, China has compressed 150 million tons of crude steel production capacity. Now China’s crude steel capacity utilization rate is more than 80%, and the aluminum industry capacity utilization rate is more than 85%, so there is no overcapacity in these 2 industries
On WTO Reform: 1. It must not only resolve traditional issues and historical debts, but also formulate rules on some new issues and realize the modernization of rules.
More specifically, ag subsidy, public stockholding, e-commerce, investment facilitation, fisheries etc.
3. On issues like e-commerce, China hold an open attitude and adopt the joint declaration initiative. Some members first reach an agreement, i.e., plurilateral agreement to resolve some specific regulatory issues in these areas. Later other Members can join.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
Ban on forced transfer of source code is one of the key obligations in the CPTPP. It has long been regarded as one of the main obstacles for China’s accession, with many claiming that China would never accept the obligation.
But this changed today with a State Council document.
In this document called “Notice of several measures to promote institutional opening-up in free trade pilot zones and pilot free trade port in line with the international high standards”, the State Council states that the relevant authorities shall not
“require the transfer of, or access to, source code of software owned by a person of another Party, as a condition for the import, distribution, sale or use of such software, or of products containing such software”, which is language copied verbatim from the CPTPP.
China adopted its first Foreign Relations Law yesterday.
Why the law now & what are the implications for foreign businesses? I explained in this @SCMPNews story.
‘Rule of law’: China adopts new legislation to help combat foreign sanctions via @scmpnewssc.mp/kiqq?utm_sourc…
In addition to my quotes along with @georgemagnus1 below in the story, I'd like to point to the following features of the law which will make it harder for businesses, both Chinese and foreign, to operate:
@georgemagnus1 1. Art. 5 emphasizes the central unified leadership of the CCP, which adds further to the uncertainty of the business environment as the Party could take actions based on political rather than legal considerations.
Key changes in the State Council Working Rules: 1. The guiding thoughts section deleted all previous references to Marxism, Leninism, Mao, Deng, Three Represent, & Scientific Development Outlook, and keeps only XJP Thoughts on Socialism with Chinese Characteristics in the New Era
2. All major decisions and problems MUST be reported to the CCP Central Committee first.
3. All State Council members shall resolutely implement the decisions of the Party Central Committee, and refrain from speech and behavior that contradicts the decisions of the CCP Central Committee.
Xi's speech at the Central Economic Works conference in Dec is published today.
Titled "Several Major Issues in Current Economic Work", it puts the first issue as expanding domestic consumption, i.e., "Prioritize the recovery and expansion of consumption...
It is necessary to ... innovate consumption scenarios, and fully release consumption potential. It is necessary to increase the consumption capacity of low- and middle-income residents who have a high propensity to consume but are greatly affected by the epidemic."
New Chinese TV drama #三体电视剧 (Three Body) is interesting to watch, not only because it is based on a @HugoAwards-winning novel, but because it helps to understand China’s highly-confrontational wolf warrior diplomacy which kept emphasizing "struggle".
As stated in the first episode by a Chinese general, the fact that we humans have survived from the Neolithic age until today without major catastrophes is a pure coincidence.
Similarly, the Chinese leadership believes that the peaceful period since 1978 is a pure coincidence.
Now the period is over, which is why Xi has been emphasizing that the world is not peaceful at all, as he stated in his video call with @POTUS last year.
Three Body is full of metaphors with striking resemblances to China’s history since the mid-1970s: