WTO favors both China and US in cards spat
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E-mail China.org.cn, July 17, 2012
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A WTO panel rejected the U.S.' claim that China maintains China UnionPay as an across-the-board monopoly supplier for the processing of all domestic RMB payment card transactions. [Photo/Xinhua] |
A World Trade Organization (WTO) panel partially sided with the United States in its complaint against China's certain restrictions and requirments on electronic payment services. [WTO's panel report on China electronic payment services dispute]
The U.S. complained to the WTO about China's limits on payment processing, accusing China of favoring China UnionPay as the sole supplier of electronic payment services for payment card transactions denominated and paid in RMB in China and forbiding foreign companies from issuing their own bank cards denominated in RMB and building networks to support such cards or handling interbank point-of-sale transactions.
The WTO panel concluded that China acted in line with its market access commitment by "unfairly discriminating against" foreign players of electronic-pyament services. Due to insufficient evidence, the panel rejected the U.S.' claim that China maintains China UnionPay as an across-the-board monopoly supplier for the processing of all domestic RMB payment card transactions.
But they rejected the U.S. allegation that UnionPay monopolizes the handling of domestic-currency payment-card transactions.
China's Ministry of Commerce said in a statement that the panel rejected some claims of the U.S. and China welcomes these findings.
However, China has reservations on the panel's finding that the electronic payment service at issue should be classified as "all payment and money transmission services" under China's schedule, it said.
It said that China will carefully study the panel report and continue to work in accordance with the WTO dispute settlement rules.
The U.S. requested consultations with China on Sept. 15, 2010, claiming that China acted inconsistently with its obligations by permitting only China UnionPay to supply electronic payment services for payment card transactions denominated and paid in RMB in China.
WTO Director-General Pascal Lamy composed the panel on July 4, 2011 to examine the dispute.
China UnionPay (CUP) has extended its overseas emergency cash assistance service to 20 countries and regions. Holders of CUP bank cards will be able to access the service in 52 outlets located in 20 countries and regions, including outlets recently installed in the United States and Japan.
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