Advertising Industry
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.
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