As learned from the Ministry of Commerce China will honor all of its commitments on key sectors from and after 2005.

China will reduce its tariff to 10.1 percent on average in 2005 in line with its promise to the World Trade Organization. Tariffs for industrial products will be down to 9.3 percent on average and that of agricultural products to 15.6 percent. All non-tariff barriers will be removed. And all the important service sectors including banking, securities, insurance and distribution will face the end of the transitional period.

Autos

Quotas and licensing system will no longer be there for autos since January 1, 2005. Auto tariffs will be lowered to 30 percent while tariffs of parts and components will be brought down to 13 percent. The two will be further decreased to 25 percent and 10 percent respectively as of July 1, 2006.

Agriculture

Taxes for imported agricultural products will be set at 15.35 percent in 2005. Quotas will be more than that in any previous year. Wheat and corn as much as the amount equivalent of 10.7 percent and 6 percent of the domestic yields will be allowed to let in.

Banking

China will have foreign banks absolutely free from any restrictions of ownership, types of operation and incorporation, branches and licensing in 2006. Foreign banks can offer RMB services to Chinese clients.

Insurance

Foreign insurance companies will not geographically be confined as of around 2005. They will be allowed to launch health insurance, group insurance and annuity service. For reinsurance, compulsory ceding insurance will be annulled. Foreign brokerage businesses will not have to register equity as much as they are required now. Solely foreign funded brokers are permitted.

Telecommunication

China will lift its restriction on locations of basic telecommunication services as of 2007. And foreign stakes in a venture can reach 49 percent. Service trade officially opened to the outside

By People's Daily Online