Reuters
Nov 29, 2011
Factbox: China's decade in the WTO
Reuters
Nov 29, 2011
China marks its 10th anniversary since joining the World Trade Organization on December 11. The following is a look at how China has lived up to its WTO promises in different industries.
DISTRIBUTION/RETAIL
WHAT CHINA PROMISED: China agreed to phase out restrictions on distribution services for most products within three years. It agreed to lift joint venture restrictions on large department stores and virtually all chain stores. It also would scrap space restrictions on foreign-owned stores.
The change meant allowing foreign firms a controlling stake of up to 65 percent in retail stores. Foreign firms previously had to distribute products made in China through domestic companies.
WHERE IT STANDS NOW: China has made significant progress in opening the Chinese retail sectors, including opening up the Internet retail market to foreign-invested retailers. It has phased out distribution restrictions on distribution services for most products and lifted JV restrictions in most areas. Today, foreign enterprises can form joint ventures for most wholesale operations, and can apply for national wholesale licenses.
However, retailers -- other than those owned by Hong Kong and Macao investors -- operating more than 30 stores in China that sell pharmaceuticals, grains, vegetable oil, sugar, cotton, agricultural pesticide, chemical fertilizer and certain other commodities may not be more than 49 percent foreign-owned.
(Reporting by Kazunori Takada, Xu Wan, Terril Yue Jones, Fang Yan, Samuel Shen and Jason Subler; Editing by Don Durfee and Jonathan Thatcher)
© Thomson Reuters 2024 All rights reserved.