BIZCHINA / Education & HR
WTO Commitments
Updated: 2006-04-18 16:51
The Education Industry's WTO Commitments
A more liberal educational service trade was a promise China made upon
its entry into the World Trade Organization (WTO). WTO divides the
service trade into 12 categories -- one of them being educational service.
According to the WTO "General Agreement on Trade in Services" (GATS),
apart from educational activities completely subsidized by the
government, all educational programs that charge tuition fees and have
commercial purposes fall under the educational service trade; all WTO
signatory countries are entitled to compete to offer educational services
and organize various educational and training activities via
tele-education, launching wholly foreign-owned or joint-venture schools,
relaxing policies for studying abroad and the free flow of professionals.
WTO rules stipulate that "educational-service" related activities have
nothing to do with tariffs and trade barriers. The aim of such activities
is to encourage member countries to reform restrictive educational laws
and facilitate the educational service trade.
The educational service trade is carried out in four ways:
(1) Cross-border supply. Educational service suppliers in a member
country offer educational services to consumers in other member countries
through the Internet or by correspondence.
(2) Consumption abroad. Educational service suppliers in a member country
offer educational services, such as studying and receiving training
abroad, to customers from another member country.
(3) Commercial presence. Educational service suppliers from a member
country open commercial or professional institutions, such as schools, in
another member country.
(4) Flow of natural persons. Educational service providers from a member
country enter into another member country to provide educational
services, such as foreign teachers now teaching in China, or Chinese
teachers now teaching abroad.
Education is an issue that has a bearing on the state's sovereignty,
public morals and inheritance of national culture. All countries are very
cautious in opening the education sector, especially elementary
education. Most countries now provide non-commercial compulsory education
where available space is limited. With the exception of Mexico, Sweden
and New Zealand, Western Europe, Canada, Japan and the United States only
opened their education market partially. The US boasts of the best
educational system in the world although it only opened "adult education"
and "other education services" to foreign educational service providers.
In relation to educational services, China's WTO-entry promises fall into
four fields:
(1) China makes no promises to open its national compulsory education and
special education services, such as military, police, political and
Communist Party of China Party school education.
(2) China imposes no limitations on sending students abroad for studying
and training, nor on receiving foreign students.
(3) China promises to partly open its higher education, adult education,
high school education, preschool education and other education services.
Foreign educational service suppliers are allowed to launch joint
educational institutions or joint schools in China, with foreign majority
ownership permitted. Foreign education service suppliers are forbidden to
offer education services independently, and joint schools in China must
observe the "Regulations on Sino-Foreign Joint Schools."
(4) Foreign individual educational service suppliers may enter China to
provide educational services when invited or employed by Chinese schools
and other educational institutions on the condition that they possess a
Bachelor's degree or above and an appropriate professional title or
certificate, including two years of professional experience.
Although China has promised foreign education institutions access to its
educational service market via a "commercial presence" and "majority
ownership," this does not necessarily mean foreign educational
institutions can violate China's existing non-profit principle for the
educational industry. China only promises "market access" and a guarantee
of "management rights."
Foreign educational institutions launching non-profit schools and other
educational institutions in China may enjoy tax concessions or make
moderate profits by organizing lawful activities; the profits, however,
must be used to further their educational servicesin China and cannot be
used as economic returns or distributed as bonuses to the administrative
and teaching staff. To ensure people from all walks of life receive equal
access to education, the non-profit principle is widely observed in WTO
member and non-member countries.
(For more biz stories, please visit Industry Updates)
Most Popular Stories in 48 Hours
� BOC's public offering attracts HK citizens
� Foreign firms look to hotel sector
� Steelmakers to reject 19% iron ore hike
� Talks start over gov't contracts
� Boeing expects B747-8 success in Asia
Today's Top News
� Smuggler suspect Lai to be returned on May 26
� US limits using of Chinese computers
� Chairman Mao portrait up for auction
� 21 killed as typhoon hits S.China
� Pay rises by 16% for State sector workers
Top Biz News
� China bans import, export of endangered species
� China closes nearly 6,000 small mines
� UK offers aid to improve life in poorest areas
� Nation's first A380 pilot to receive training
� Export of fishery workers to Taiwan resumed
Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.
Learn Chinese online
