DISPUTE SETTLEMENT

DS: China — Certain Measures on the Transfer of Technology

This summary has been prepared by the Secretariat under its own responsibility. The summary is for general information only and is not intended to affect the rights and obligations of Members.

  

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Current status

 

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Key facts

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Complainant:
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(as cited in request for consultations)
Request for Consultations received:

  

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Summary of the dispute to date

The summary below was up-to-date at

Consultations

Complaint by the European Union

On 1 June 2018, the European Union requested consultations with China concerning certain measures imposed by China pertaining to the transfer of foreign technology into China.

The European Union claimed that the measures appear to be inconsistent with:

  • Articles 3, 28.1(a), 28.1(b), 28.2, 33, 39.1 and 39.2 of the TRIPS Agreement;
     
  • Article X:3(a) of the GATT 1994; and
     
  • Paragraphs 2(A)(2) of Part I of China's Protocol of Accession.

On 8 June 2018, Japan requested to join the consultations. On 14 June 2018, the United States requested to join the consultations. On 15 June 2018, Chinese Taipei requested to join the consultations.

On 20 December 2018, the European Union replaced its request for consultations with China dated 1 June 2018. In its revised request for consultations the European Union provided additional details of the measures concerning the transfer of foreign technology into China in respect of which it requested consultations with China. The European Union referred to the Regulations for the Implementation of the Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures (“JV Regulation”); the Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures (“JV Law”); New Energy Vehicle Production Enterprises and Product Admissions Regulations (“NEV Regulation”); Administration of the Examination, Approval and Registration of Foreign-invested Crop Seed Enterprises Provisions (“Seed FIE Approval Provisions”); and Regulations of the People's Republic of China on the Administration of the Import and Export of Technologies (“TIER”).

The European Union claimed that:

  • the JV Regulation, operating separately or together with the JV Law, is inconsistent with paragraphs 1.2, as it incorporates commitments under paragraphs 49 and 203 of the Working Party Report on China's Accession to the WTO, and 7.3 of Part I of China's Protocol of Accession;
      
  • the NEV Regulation, operating separately or together with other relevant instruments, is inconsistent with paragraphs 1.2, as it incorporates commitments under paragraphs 49 and 203 of the Working Party Report on China's Accession to the WTO, and 7.3 of Part I of China's Protocol of Accession;
      
  • the Seed FIE Approval Provisions, operating separately or together with other relevant instruments, is inconsistent with paragraphs 1.2, as it incorporates commitments under paragraph 203 of the Working Party Report on China's Accession to the WTO, and 7.3 of Part I of China's Protocol of Accession;
      
  • the JV Regulation, operating separately or together with other relevant instruments, is inconsistent with Articles 3.1, 28.1(a) and (b), 28.2, 33, 39.1 and 39.2 of the TRIPS Agreement and paragraph 1.2, as it incorporates commitments under paragraphs 49 and 203 of the Working Party Report on China's Accession to the WTO, of Part I of China's Protocol of Accession;
      
  • the TIER, operating separately or together with other relevant instruments, is inconsistent with Articles 3.1, 28.1(a) and (b), 28.2, 39.1 and 39.2 of the TRIPS Agreement and paragraph 1.2, as it incorporates commitments under paragraphs 49 and 203 of the Working Party Report on China's Accession to the WTO, of Part I of China's Protocol of Accession;
      
  • the measures concerning the transfer of technology into China are applied in a manner inconsistent with Article X:3(a) of the GATT 1994 and Paragraph 2(A)2 of China's Protocol of Accession.

On 15 January 2019, Chinese Taipei requested to join the revised consultations. On 18 January 2019, Japan and the United States requested to join the revised consultations.

 

 

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