Description: China's Accession to the World Trade Organization : The Services Dimension

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China's Accession to the World Trade Organization : The Services Dimension

China's General Agreement on Trade in Services (GATS) commitments represent the most radical services reform program negotiated in the World Trade Organization. China has promised to eliminate over the next few years most restrictions on forei...

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Bibliographic Details
Main Author:	Mattoo, Aaditya
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	TRADE AGREEMENTS SERVICES SERVICE EXPORTS REFORM POLICY WORLD TRADE ORGANIZATION RESTRICTIONS FOREIGN ENTERPRISES OWNERSHIP TRADE LIBERALIZATION REGULATORY REFORM TELECOMMUNICATIONS LIFE INSURANCE FOREIGN INVESTMENTS PERFORMANCE INDICATORS PRUDENTIAL REGULATIONS FINANCIAL SERVICES COMPETITIVENESS ACCOUNTING AIRPORTS AUXILIARY SERVICES BANKING SECTOR CAPITAL REQUIREMENTS CITIES COLLABORATION COMMERCIAL PRESENCE COMPETITIVE DISADVANTAGE COMPETITIVE MARKET STRUCTURES CONSUMPTION ABROAD CROSS- BORDER SUPPLY CROSS-BORDER DELIVERY CROSS-BORDER SUPPLY CURRENT COSTS DEBT DEPOSITS DIRECT INVESTMENT DISTRIBUTION NETWORKS DISTRIBUTION SERVICES DOMESTIC FIRMS DOMESTIC REGULATION DOMESTIC REGULATIONS ECONOMIES OF SCALE ENERGY SERVICES ENGINEERING SERVICES ENTRY RESTRICTIONS FIXED COSTS FOREIGN BANK FOREIGN BANKS FOREIGN CAPITAL FOREIGN ENTRY FOREIGN INVESTMENT FOREIGN OWNERSHIP FOREIGN PROVIDERS FOREIGN SERVICE SUPPLIERS FULL LIBERALIZATION GATS GOVERNMENT DEBT HEALTH SERVICES IMPORTING COUNTRY INCOME INCUMBENT SUPPLIERS INFANT INDUSTRY POLICIES INFANT INDUSTRY TYPE INSURANCE INSURANCE COMPANIES INSURANCE COMPANY INSURANCE SERVICES INSURERS INVENTORY LIBERALIZING COMMITMENTS LIBERALIZING INTENT LICENSES LIMITED ACCESS MARGINAL COST MARKET ACCESS MARKET ACCESS COMMITMENTS MARKET FAILURE MARKET STRUCTURE MEDICAL SERVICES MFN MFN EXEMPTIONS MODES OF SUPPLY MOST-FAVOURED-NATION NATIONAL TREATMENT NATURAL MONOPOLY NATURAL PERSONS NEW ENTRANTS NONPERFORMING LOANS POLICY RESEARCH PREFERENTIAL ACCESS PREFERENTIAL LIBERALIZATION PRESENCE OF NATURAL PERSONS PRO-COMPETITIVE REGULATION PROFESSIONAL SERVICES PROVISIONS QUANTITATIVE RESTRICTIONS QUOTA RENTS RADIO RECOGNITION AGREEMENTS REGULATORY AGENCY REGULATORY FAILURE REGULATORY FRAMEWORK REGULATORY MECHANISMS REGULATORY PRINCIPLES REGULATORY REQUIREMENTS RENT APPROPRIATION REVENUE SHARING ROADS SATELLITES SCALE ECONOMIES SERVICE SECTORS SERVICE SUPPLIER SERVICE SUPPLIERS SERVICE TRANSACTIONS SERVICES LIBERALIZATION SERVICES MARKETS SERVICES NEGOTIATIONS SERVICES SECTORS SERVICES TRADE SEWAGE SPILLOVERS STATE BANKS SUBSIDIARIES SUBSIDIARY TAXATION TELECOM INFRASTRUCTURE TELECOMMUNICATIONS SECTOR TELECOMMUNICATIONS SERVICES TRADE DIVERSION TRADE IN SERVICES TRADE SERVICES TRADING PARTNERS TRANSPARENCY TRANSPORT TRANSPORT SERVICES URBAN PLANNING WTO COMPETITIVENESS
Online Access:	http://documents.worldbank.org/curated/en/2002/12/2082428/chinas-accession-world-trade-organization-services-dimension http://hdl.handle.net/10986/19194

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Summary:	China's General Agreement on Trade in Services (GATS) commitments represent the most radical services reform program negotiated in the World Trade Organization. China has promised to eliminate over the next few years most restrictions on foreign entry and ownership, as well as most forms of discrimination against foreign firms. These changes are in themselves desirable. However, realizing the gains from, and perhaps even the sustainability of, liberalization will require the implementation of complementary regulatory reform and the appropriate sequencing of reforms. Three issues, in particular, merit attention: 1) Initial restrictions on the geographical scope of services liberalization could encourage the further agglomeration of economic activity in certain regions-to an extent that is unlikely to be reversed completely by subsequent countrywide liberalization. 2) Restrictions on foreign ownership (temporary in most sectors but more durable in telecommunications and life insurance) may dampen the incentives of foreign investors to improve firm performance. 2) Improved prudential regulation and measures to deal with the large burden of non-performing loans on state banks are necessary to deliver the benefits of liberalization in financial services. And in basic telecommunications and other network-based services, meaningful liberalization will be difficult to achieve without strengthened pro-competitive regulation.