THIS December 11 marked the third anniversary of China's entry into the World Trade Organization (WTO). As it has done during the past three years, China will continue to honour its WTO commitments and eliminate limitations on wholesale, insurance and securities business by foreign-funded companies, while opening markets in key goods such as processed oil, medicines and agricultural products.

Agriculture

Tariffs on imported agricultural products will be reduced to 15.35 per cent in 2005. The import licence system for woollen products will be abolished in 2005. The quotas on soybean oil, palm oil and colza oil are scheduled to be removed by January 2006.

Wholesale

Foreign companies have been allowed to establish wholly foreign-owned wholesale operations since December 11, 2004. The wholesale distribution of books, newspapers, magazines, pharmaceutical products and pesticides, which had previously been restricted, is also permitted. The distribution of chemical fertilizers and processed and crude oil will remain closed until December 11, 2006.

Insurance

Foreign insurance companies are allowed to provide health, group, and pension/annuities insurance to both foreign and Chinese clients beginning January 1, 2005. All geographical restrictions will be lifted, and foreign partners in insurance brokerage joint ventures may raise their stakes to 51 per cent.

Securities

The stake owned by foreign investors in securities management companies will be lifted to 49 per cent from 33 per cent. China introduced the qualified foreign institutional investor (QFII) system in 2003, opening China's renminbi-denominated, domestic A-share market to foreign investors.

(Star News)