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* Foreign-invested enterprises in China have been allowed to import machinery, equipment and raw materials for self-manufacturing and export their own products since the nation began its reform and opening up process in 1978.

* In September, 1996, China allowed the pilot establishment of Chinese-foreign joint trade companies. Foreign investors should have an annual turnover exceeding US$5 billion, and average annual trade volumes exceeding US$30 million for three consecutive years. And they are required to have established representative offices in China for three years or have invested more than US$30 million in China. Six pilot Sino-foreign joint venture trading firms were established in Shanghai and Shenzhen by March 2003.

* In 1999, private Chinese enterprises were allowed to enter the trade sector.

* In March, 2003, foreign investors with average annual trade volumes exceeding US$30 million for three consecutive years were allowed to apply to establish joint venture trading firms. The annual trade volume requirement was lowered to US$20 million, for three consecutive years, for foreign investors who register their joint ventures in China's central and western regions. Only minority foreign owned trade companies can apply for trading rights.

* In September, 2003, China further lowered the threshold of its foreign trading rights and relaxed controls on right approvals for domestic companies. The bottom line of registered capital for professional foreign trading companies is lowered from 5 million yuan (US$604,000) to 1 million yuan (US$120,000).

* According to WTO commitments, China will grant trading rights to majority foreign owned joint ventures after December 11, 2003.

* Under the commitments, full trading rights will be granted to all enterprises in China after December 11, 2004.



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