China has decided not to appeal against a
World Trade Organization (WTO) ruling that the country’s card
processing industry discriminates against foreign companies.
The decision was made on 31 August during a
Dispute Settlement Body meeting, after the 60 day
period available for appealing had passed.
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In July, the WTO backed US claims that the
Chinese state-owned card network UnionPay had a monopoly on
domestic yuan-denominated transactions, preventing foreign
companies from operating in the country, in breach of WTO
rules.
The WTO dismissed the claim that UnionPay was
also an “across-the-board monopoly supplier”, meaning that the
ruling only applies to local currency transactions made with cards
issued in China.
Commenting on that aspect of the WTO’s ruling,
Reuters reported a statement from the Chinese Commerce
Ministry:
“China’s electronic payments market is already
very open. The panel’s decision rejected US charges that UnionPay
was the only service provider, and affirmed that (China’s policy)
does not prevent foreign service providers from entering China’s
market.
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