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ASEAN-CHINA AGREEMENT ON TRADE IN SERVICESANNEX 2/SC3THE PEOPLE'S REPUBLIC OF CHINASchedule of Specific CommitmentsAC-TIS/SC3/PRC

CHINA - SCHEDULE OF SPECIFIC COMMITMENTSFor the 3rd Package of Commitments under ASEAN - China FTA Trade in ServicesModes of supply: (1) Cross-border supplySector or Subsector(2) Consumption abroad(3) Commercial presenceSector or SubsectorSector or Subsector(4) Presence of natural personsSector or Subsector1I. HORIZONTAL COMMITMENTSALL SECTORS INCLUDED IN THISSCHEDULE(3)In China, foreign investedenterprises include foreign capitalenterprises (also referred to aswholly foreign-owned enterprises)and joint venture enterprises andthere are two types of joint ventureenterprises: equity joint ventures2and contractual joint ventures.(3)Unbound for all subsidies todomestic services suppliers exceptthose committed by China in itsWTO accession.The proportion of foreigninvestment in an equity joint ventureshall be no less than 25 per cent ofthe registered capital of the jointventure.The establishment of branches byforeign enterprises is unbound,unless otherwise indicated inspecific sub-sectors, as the lawsand regulations on branches offoreign enterprises are underformulation.1In this commitment, the mention of “foreign” in both horizontal and specific commitments only refers to “ASEAN Member Countries”.The terms of the contract, concluded in accordance with China's laws, regulations and other measures, establishing a "contractual joint venture" govern matters such as the manner ofoperation and management of the joint venture as well as the investment or other contributions of the joint venture parties. Equity participation by all parties to the contractual jointventure is not required, but is determined pursuant to the joint venture contract. “Foreign invested enterprise” in this schedule means a foreign invested enterprise duly constituted orotherwise organized under “Law on Chinese-Foreign Equity Joint Ventures”, “Law on Chinese-Foreign Contractual Joint Ventures” and “Law on Foreign-Capital Enterprises”.22AC-TIS/SC3/PRC

CHINA - SCHEDULE OF SPECIFIC COMMITMENTSFor the 3rd Package of Commitments under ASEAN - China FTA Trade in ServicesModes of supply: (1) Cross-border supplySector or Subsector(2) Consumption abroad(3) Commercial presenceSector or SubsectorSector or Subsector(4) Presence of natural personsSector or SubsectorRepresentative offices of foreignenterprises are permitted to beestablished in China, but they shallnot engage in any profit-makingactivities except for therepresentative offices under CPC861, 862, 863, 865 in the sectoralspecific commitmentsThe land in the People's Republic ofChina is State-owned. Use of landby enterprises and individuals issubject to the following maximumterm limitations:(a) 70 years for residentialpurposes;(b) 50 years for industrialpurposes;(c) 50 years for the purpose ofeducation, science, culture,public health and physicaleducation;(d) 40 years for commercial,tourist and recreationalpurposes;(e) 50 years for comprehensiveutilization or other purposes.3AC-TIS/SC3/PRC

CHINA - SCHEDULE OF SPECIFIC COMMITMENTSFor the 3rd Package of Commitments under ASEAN - China FTA Trade in ServicesModes of supply: (1) Cross-border supplySector or Subsector(4)(2) Consumption abroad(3) Commercial presenceSector or SubsectorSector or SubsectorUnbound except for measuresconcerning the entry and temporarystay of natural persons who fall intoone of the following categories:(4)(4) Presence of natural personsSector or SubsectorUnbound except for the measuresconcerning the entry and temporarystay of natural persons who fall intothe categories referred to in themarket access column.(a) Managers, executives andspecialists defined as senioremployees of a corporation ofa Party that has established arepresentative office, branch orsubsidiary in the territory of thePeople's Republic of China,temporarily moving as intracorporate transferees, shall bepermitted entry for an initialstay of three years;(b) Managers, executives andspecialists defined as senioremployees of a corporation ofParties, being engaged in theforeign invested enterprises inthe territory of the People'sRepublic of China forconducting business, shall begranted a long-term stay permitas stipulated in the terms ofcontracts concerned or aninitial stay of three years,whichever is shorter;(c) Service salespersons –persons not based in theterritory of the People'sRepublic of China andreceiving no remuneration from4AC-TIS/SC3/PRC

CHINA - SCHEDULE OF SPECIFIC COMMITMENTSFor the 3rd Package of Commitments under ASEAN - China FTA Trade in ServicesModes of supply: (1) Cross-border supplySector or Subsector(2) Consumption abroad(3) Commercial presenceSector or SubsectorSector or Subsector(4) Presence of natural personsSector or Subsectora source located within China,and who are engaged inactivities related torepresenting a service supplierfor the purpose of negotiationfor the sale of services of thatsupplier where:(a) such sales are not directlymade to the general public and(b) the salesperson is notengaged in supplying theservice: entry for salespersonsis limited to a 90-day period.(d) Contractual ServiceSuppliers(CSS): Foreignnatural persons who enter theterritory of China temporarily inorder to perform a servicepursuant to a contract(s)between their employers and aservice consumer(s) of China.Their employers shall be acompany/partner/firm of otherParties which has nocommercial presence in theterritory of China. CSS receiveremuneration from theiremployer while abroad, andhave appropriate educationaland technical (professional)qualifications relevant to theservice to be provided. Theirduration of stay is subject to5AC-TIS/SC3/PRC

CHINA - SCHEDULE OF SPECIFIC COMMITMENTSFor the 3rd Package of Commitments under ASEAN - China FTA Trade in ServicesModes of supply: (1) Cross-border supplySector or Subsector(2) Consumption abroad(3) Commercial presenceSector or SubsectorSector or Subsector(4) Presence of natural personsSector or Subsectorthe duration of contract and (iflonger) shall not exceed 1year. They can not performservices which are not relatedto the service activity which isthe subject of the contract. Theservices provided by CSS areonly limited to the specificsectors as follows:(1) Accounting Services(2) Medical and dentalservices(3) Architectural services(4) Engineering services(5) Urban planning services(except general urbanplanning)(6) Computer and relatedservices(7) Construction and RelatedEngineering Services(8) Education Services: CSSshall acquire a bachelor’sdegree or above, receiveappropriate professionaltitles or certificates, andhave at least 2-yearprofessional workexperience. The Chineseparty involved in thecontract shall be a juridicalperson which has thefunction of providingeducation service6AC-TIS/SC3/PRC

CHINA - SCHEDULE OF SPECIFIC COMMITMENTSFor the 3rd Package of Commitments under ASEAN - China FTA Trade in ServicesModes of supply: (1) Cross-border supplySector or Subsector(2) Consumption abroad(3) Commercial presenceSector or SubsectorSector or Subsector(4) Presence of natural personsSector or Subsector(9) Tourism Services(e) othersInstallers and servicers:Qualified specialists supplyinginstallation or maintenanceservices for machinery orindustrial equipment. Thesupply of that service has tooccur on a fee or contractualbasis (installation/maintenancecontract) between the builderof the machinery or equipmentand the owner of thatmachinery or equipment, bothof them being juridical personsDuration of stay of the installers andservicers is subject to the durationof contract, but shall not exceed 3months. They cannot performservices which are not related to theservice activity which is the subjectof the contract, and should haveappropriate technical (professional)qualifications relevant to the serviceto be provided.7AC-TIS/SC3/PRC

CHINA - SCHEDULE OF SPECIFIC COMMITMENTSFor the 3rd Package of Commitments under ASEAN - China FTA Trade in ServicesModes of supply: (1) Cross-border supplySector or SubsectorI. SPECIFIC COMMITMENTS1. BUSINESS SERVICESA. Professional Services(a) Legal Services(CPC 861, excluding Chineselaw practice)(2) Consumption abroad(3) Commercial presenceSector or SubsectorSector or Subsector(1)None(1)None(2)None(2)None(3)Foreign law firms can provide legalservices only in the form ofrepresentative offices.Representative offices can engagein profit-making activities.Business scope of foreignrepresentative offices is only asfollows:(a) to provide clients withconsultancy on the legislationof the country/region wherethe lawyers of the law firm arepermitted to engage inlawyer's professional work,and on internationalconventions and practices;(b) to handle, when entrusted byclients or Chinese law firms,legal affairs of thecountry/region where thelawyers of the law firm arepermitted to engage inlawyer's professional work;(c) to entrust, on behalf of foreignclients, Chinese law firms todeal with the Chinese legalaffairs;(d) to enter into contracts tomaintain long-term(3)All representatives shall be residentin China no less than six monthseach year. The representative officeshall not employ Chinese nationalregistered lawyers.8(4) Presence of natural personsSector or SubsectorAC-TIS/SC3/PRC

CHINA - SCHEDULE OF SPECIFIC COMMITMENTSFor the 3rd Package of Commitments under ASEAN - China FTA Trade in ServicesModes of supply: (1) Cross-border supplySector or Subsector(2) Consumption abroad(3) Commercial presenceSector or SubsectorSector or Subsector(4) Presence of natural personsSector or Subsectorentrustment relations withChinese law firms for legalaffairs;(e) to provide information on theimpact of the Chinese legalenvironment.Entrustment allows the foreignrepresentative office to directlyinstruct lawyers in the entrustedChinese law firm, as agreedbetween both parties. Therepresentatives of a foreign law firmshall be practitioner lawyers whoare members of the bar or lawsociety in a ASEAN membercountry and have practiced for noless than two years outside ofChina. The Chief representativeshall be a partner or equivalent(e.g., member of a law firm of alimited liability corporation) of a lawfirm of a ASEAN member countryand have practiced for no less thanthree years outside of China.(4)Unbound except as indicated inhorizontal commitments(4)9Unbound except as indicated inhorizontal commitmentsAC-TIS/SC3/PRC

CHINA - SCHEDULE OF SPECIFIC COMMITMENTSFor the 3rd Package of Commitments under ASEAN - China FTA Trade in ServicesModes of supply: (1) Cross-border supplySector or Subsector(b) Accounting, auditing andbookkeeping services (CPC 862)(2) Consumption abroad(3) Commercial presenceSector or ps or incorporatedaccounting firms are limited toCertified Public Accountants(CPAs) licensed by the Chineseauthorities(3)NoneUnbound except as indicted inhorizontal commitments.(4)(4)(4) Presence of natural personsSector or SubsectorSector or Subsector--Unbound except as indicted inhorizontal commitments.--10Foreign accounting firms arepermitted to affiliate withChinese firms and enter intocontractual agreements withtheir affiliated firms in theother WTO Members.Issuance of licenses to thoseforeigners who have passedthe Chinese national CPAexamination shall beaccorded national treatment.Applicants will be informed ofresults in writing no later than30 days after submission oftheir applications.Accounting firms providingservices in CPC 862 canengage in taxation andmanagement consultingservices. They will not besubject to requirements onform of establishment in CPC865 and 8630.AC-TIS/SC3/PRC