BIZCHINA / Culture & Media
WTO Commitments
Updated: 2006-04-18 16:52
Advertising Industry's WTO Commitments
Advertising services are generally covered by the CPC 871 in the World
Trade Organization's (WTO) service-trade section or sub-section
catalogues. The commitments China made to the advertising industry upon
its entry into the WTO are as follows:
With respect to limitations to market access: If the services are
provided in the form of cross-border supplies, they will be conducted
only through advertising agents registered in China with the right to
provide foreign advertising services.
If the services are provided in the form of consumption abroad, they will
also only be conducted through advertising agents registered in China who
have the right to provide foreign advertising services. If the services
are provided in the form of commercial presence, foreign service
suppliers are permitted to establish advertising enterprises in China
only in the form of joint ventures with a foreign investment of no more
than 49 percent.
Within two years of China's accession, foreign-majority ownership will be
permitted, and within four years of its accession, wholly foreign-owned
subsidiaries will be permitted.
If the services are provided in the form of presence of natural persons,
no commitments will be made except for measures concerning the entry and
temporary stay of natural persons falling into one of the following
categories:
(a) Managers, executives and specialists defined as senior employees of a
WTO-member corporation that has established a representative office,
branch or subsidiary in the People's Republic of China temporarily moving
as intra-corporate transferees, will be permitted entry for an initial
three-year stay;
(b) Managers, executives and specialists defined as senior employees of a
WTO-member corporation engaged in foreign-invested enterprises in the
People's Republic of China for conducting business will be granted a
long-term stay permit as stipulated in the terms of contracts concerned,
or an initial three-year stay -- which ever is shorter;
(c) Service salespersons -- persons not based in 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 negotiations for selling such services for
that supplier where: (i) such sales are not directly made to the general
public and (ii) the salesperson is not engaged in supplying the service,
entry for salespersons is limited to 90 days.
In respect to limitations to national treatment: If the services are
provided in the form of presence of cross-border supplies, there will be
no limitations. If the services are provided in the form of presence of
consumption abroad, there will be no limitations. If the services are
provided in the form of commercial presence, there will be no
limitations. If the services are provided in the form of the presence of
natural persons, there will be no limitations except as indicated in the
Horizontal Commitments, and the contents will be the same.
No further commitments to advertising services exist except the ones
mentioned above.
(For more biz stories, please visit Industry Updates)
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