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- Trading and Distribution Rights -
China will permit the
right to import and export without middlemen (trading rights), as
well as full rights of distribution, including wholesale, retail
and after-sale service, repair, maintenance, customer support,
sales away from a fixed location, and transportation (distribution
rights). Trading and distribution rights will be phased-in over a
three-year period.
Quotas - China will eliminate existing quotas upon
accession for the top U.S. priorities, including fiber optic
cable. China will phase out all remaining quotas, generally by
2002, but no later than 2005.
Production quotas are not
covered under the WTO; the terms of this agreement do not prohibit
China from implementing them. For import quota details, see the
ITA schedule.
Telecom Services - China will become a member of the Basic
Telecom Agreement (BTA). China has agreed to implement the
pro-competitive regulatory principles embodied in the BTA,
including cost-based pricing, interconnection rights and
independent regulatory authority. China also agreed to
technology-neutral scheduling, which means foreign suppliers can
use any technology they choose to provide telecom
services.
China will phase out all geographic restrictions
for paging in three years, value added and closed user groups in
three years, mobile/cellular in five years, and domestic wireline
in six years. China's key telecom services corridor in
Beijing/Shanghai/Guangzhou, which represents 75 percent of all
domestic traffic, will open immediately upon accession in all
telecom services.
China will allow 49 percent foreign
investment in all services and will allow 50 percent foreign
ownership for value added in two years, and paging services in
three years.
Internet Access - Because of the enormous projected growth
in Internet access in China over the coming decade, a key priority
of the United States was to ensure that China's telecom-service
commitment clearly included all aspects of Internet service. The
agreement ensures that Internet services will be liberalized at
the same rate as other key telecommunications
services.
Satellites - China has clarified that it will permit
provision of telecom services via
satellite.
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