China Regulatory Brief: China-Australia FTA, Consumer Product Recalls System to be Further Developed

June 22, 2015 Posted by China Briefing Reading Time: 4 minutes

China and Australia Officially Sign FTA

On June 17, Australian Minister for Trade & Investment Andrew Robb and Chinese Minister of Gao Hucheng officially signed the Free Trade Agreement (FTA) between the two countries. The FTA covers over ten industrial sectors such as agriculture, mining, manufacturing and commercial services. When enacted, the tariffs on 85.4 percent of China and Australia goods will be subject to zero tariff rates gradually. Further, both countries will grant each other the most favorable nation (MFN) treatment, meaning that imports will be subject to MFN rates that are much lower than the general rates which apply to non-MFN nations. China is Australia’s largest trade partner, with 20 percent of Australian imports coming from China, and 36 percent of exports going to China.

Jing-Jin-Ji to Adopt a Negative list for Foreign Investment

China’s so-called Jing-Jin-Ji region (an abbreviation of the Chinese names of Beijing, Tianjin, and Hebei) has recently announced its decision to join China’s free trade zones (FTZs) in adopting a negative list for foreign investment. According to the plan, to reorganize its industry structure, the Beijing government will shut down certain manufacturing enterprises processing high energy consumption or high pollution products. Meanwhile, Beijing will divert some of its population to neighboring cities to ease population pressure in the capital. The standard price for water, land and natural gas will also be raised for companies established in Beijing.

China Revises Administrative Measures for Chinese Citizens Travelling to/from Taiwan

On June 14, China’s State Council released the amended “Administrative Measures for Chinese Citizens Travelling to/from Taiwan,” which will take effect on July 1, 2015. Based on the new measures, the valid period of the “Taiwan Travel Permit for Mainland Residents” shall be extended from the current five years to ten years. Meanwhile, the visa requirements for Taiwan residents travelling to China will be relaxed. China has been making effort to boost cross-strait exchanges during recent years. In April this year, China officially launched a free trade zone in Fujian province, aiming at strengthening the province’s cooperation and economic ties with Taiwan and further opening up its financial sector for foreign investment.

China to Further Develop Consumer Product Recalls System

On June 17, the State Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) released the draft of the “Administrative Measures for Consumer Product Recalls,” which is currently open to public commentary. The Measures clarifies that product produces have a responsibility to ensure that their products comply with the applicable requirements stipulated by relevant laws and regulations. The producers should stop manufacturing, selling and importing certain goods and initiate a product recall once they become aware of a defect that makes a product unsafe. Please note that the Measures does not apply to the following products:

Services (excluding the products used when providing services)
Products used for commercial exhibition
International transit goods and exported goods
Automobiles
Food, medicine, cosmetics and medical device
Tobaccos
Pesticides
Printed products
Constructions (excluding building materials and equipment)
Other special products stipulated by relevant laws and regulations

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