| Press Release from Permanent Mission of China to the WTO |
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| Sunday,December 02,2007 Posted: 00:23 BJT(1623 GMT) |
| From:Chinese Mission to WTO Article type:Original |
On 29 November 2007, H.E. Mr. SUN Zhenyu, Chinese Ambassador and Permanent Representative to the WTO, H.E. Mr. Peter ALLGEIER, US Ambassador and Permanent Representative to the WTO and H. E. Mr. Fernando DE MATEO Y VENTURINI, Mexican Ambassador and Permanent Representative to the WTO signed respectively the Memorandum of Understanding Between the People’s Republic of China and the United States of America Regarding Certain Measures Granting Refunds, Reductions or Exemptions from Taxes or Other Payments and Memorandum of Understanding Between the People’s Republic of China and the United Mexican States Regarding Certain Measures Granting Refunds, Reductions or Exemptions from Taxes or Other Payments.
In the MOUs, China made it clear to the US and Mexico that the policy of exemption for certain foreign-invested enterprises from payments to the State for worker allowances is no longer operative, the policy of value-added tax (VAT) refund to enterprises for the purchase of domestically produced equipments does not constitute prohibited subsidies as provided by relevant provisions of WTO agreements, and other preferential policies on income tax pertinent to the disputes have been repealed or will be repealed along with the implementation of the new Enterprise Income Tax Law of China.
The MOUs will be notified to the WTO as mutually acceptable solutions to the above-mentioned disputes in accordance with the Dispute Settlement Understanding of the WTO.
(Geneva, November 29, 2007)
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