Nicaragua reserves the right to adopt or maintain any measure with respect to coastal lands, islands and river banks under possession of Nicaragua.
Annex II Entry 6 – Social Services
Sector: Social Services
Obligations Affected: National Treatment (Articles 8.2 and 11.2) Most Favored Nation Treatment (Articles 8.3 and 11.3) Local Presence (Article 8.5) Performance Requirements (Article 11.8) Senior Management and Boards of Directors (Article 11.9)
Government Level: Central
Measures: Political Constitution of the Republic of Nicaragua with its Incorporated Reforms, published in La Gaceta, Diario Oficial, No. 32 of February 18, 2014 and its Consolidated Text, published in La Gaceta, Diario Oficial, No. 181 of September 28, 2022.
Description: Investment and Cross-Border Trade in Services
Nicaragua reserves the right to adopt or maintain any measure with respect to the enforcement of laws and correctional services, and the following services to the extent that they are social services established or maintained for a public purpose: unemployment insurance, social security and social insurance and security social welfare, public education, public training, health and child care.
Annex II Entry 7 – All Sectors
Sector: All Sectors
Obligations Affected: Most Favored Nation Treatment (Articles 8.3 and 11.3) Local Presence (Article 8.5) Performance Requirements (Article 11.8) Senior Management and Boards of Directors (Article 11.9)
Government Level: Central
Measures: Political Constitution of the Republic of Nicaragua with its Incorporated Reforms, published in La Gaceta, Diario Oficial, No. 32 of February 18, 2014, and its Consolidated Text, published in La Gaceta, Diario Oficial, No. 181 of September 28, 2022.
Description: Investment and Cross-Border Trade in Services
Nicaragua reserves the right to adopt or maintain any measure regarding the establishment, acquisition, expansion, management, conduct, or operation of Small and Medium Enterprise (SMEs).
Nicaragua reserves the right to adopt or maintain any measure that grants rights or preferences to small and medium enterprises.
Annex II Entry 8 – Energy
Sector: Energy
Obligations Affected: National Treatment (Articles 8.2 and 11.2) Most Favored Nation Treatment (Articles 8.3 and 11.3) Performance Requirements (Article 11.8) Senior Management and Boards of Directors (Article 11.9)
Government Level: Central
Measures: Political Constitution of the Republic of Nicaragua with its Incorporated Reforms, published in La Gaceta, Diario Oficial, No. 32 of February 18, 2014 and its Consolidated Text, published in La Gaceta, Diario Oficial, No. 181 of September 28, 2022.
Description: Investment and Cross-Border Trade in Services
Nicaragua reserves the right to adopt or maintain any measure related to the establishment, acquisition, expansion, management, conduction or operations of any company in the field of generation, distribution, and commercialization of electricity.
Annex II Entry 9 – Fossil Fuels
Sector: Fossil Fuels
Obligations Affected: National Treatment (Article 8.2) Most Favored Nation Treatment (Article 8.3) Local presence (Article 8.5)
Government Level: Central
Measures: Political Constitution of the Republic of Nicaragua with its Incorporated Reforms, published in La Gaceta, Diario Oficial, No. 32 of February 18, 2014 and its Consolidated Text, Political Constitution of the Republic of Nicaragua, published in La Gaceta, Diario Oficial, No. 181 of September 28, 2022.
Description: Cross-Border Trade in Services
Nicaragua reserves the right to adopt or maintain any measure related to the establishment, acquisition, expansion, management, conduction or operations of any company in the field of exploration and exploitation of fossil fuels and its supply.
Annex III. SCHEDULE OF CHINA
EXPLANATORY NOTE
1. The commitments under Chapter 9 (Financial Services) shall be subject to this Explanatory Note and the Schedule of China to this Annex sets out:
(a) headnotes that limit or clarify the commitments of China with respect to the obligations described in subparagraph (b)(i) through (v) and in subparagraph (c),
(b) in Section A, pursuant to Article 9.9 (Non-Conforming Measures), the existing measures of China that do not conform with some or all of the obligations imposed by:
(i) Article 9.2 (National Treatment);
(ii) Article 9.3 (Most-Favored-Nation Treatment);
(iii) Article 9.4 (Market Access for Financial Institutions);
(iv) Article 9.5 (Cross-Border Trade); or
(v) Article 9.8 (Senior Management and Boards of Directors), and
(c) in Section B, pursuant to Article 9.9 (Non-Conforming Measures), the specific sectors, subsectors, or activities for which China may maintain existing, or adopt new or more restrictive, measures that do not conform with the obligations imposed by Article 9.2 (National Treatment), 9.3 (Most-Favored-Nation Treatment), 9.4(Market Access for Financial Institutions), 9.5 (Cross-Border Trade), or 9.8 (Senior Management and Boards of Directors).
2. Each entry in Section A sets out the following elements:
(a) Sector refers to the general sector for which the entry is made;
(b) Subsector refers to the specific sector for which the entry is made;
(c) Obligations Concerned specifies the article(s) referred to in paragraph 1(b) that, pursuant to Article 9.9.1(a)(Non-Conforming Measures), do not apply to the non-conforming aspects of the Measures or the Description, as set out in paragraph 4;
(d) Measures identify the laws, regulations, or other measures for which the entry is made. A measure cited in the Measures element:
(i) means the measure as amended, continued, or renewed as of the date of entry into force of this Agreement; and
(ii) includes any subordinate measure adopted or maintained under the authority of and consistent with the measure; and
(e) Description sets out the non-conforming aspects of the measures for which the entry is made.
3. Each entry in Section B sets out the following elements:
(a) Sector refers to the general sector for which the entry is made;
(b) Subsector refers to the specific sector for which the entry is made;
(c) Obligations Concerned specifies the article(s) referred to in paragraph1(c) that, pursuant to Article 9.9, do not apply to the sectors, subsectors, or activities scheduled in the entry;
(d) Description sets out the scope of the sectors, subsectors, or activities covered by the entry.
4. For entries in Section A, in accordance with Article 9.9.1(a) (Non-Conforming Measures), and subject to Article 9.9.1(c), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the non-conforming aspects of the Description element, or the law, regulation, or other measure identified in the Measures element of that entry.
5. For entries in Section B, in accordance with Article 9.9.2 (Non-Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry shall not apply to the sectors, subsectors, and activities identified in the Description element of that entry.
6. In the interpretation of a reservation in Section A, all elements of the reservation shall be considered. A reservation shall be interpreted in the light of the relevant provisions of the Chapter against which the reservation is taken, and the Measures element shall prevail over all the other elements.
7. In the interpretation of a reservation in Section B, all elements of the reservation shall be considered. The Description element shall prevail over all the other elements.
8. Where China maintains a measure that requires that a service supplier be a citizen, as a condition to the supply of a service in its territory, a Schedule entry for that measure taken with respect to Article 9.2 (National Treatment), Article 9.3 (Most-Favored-Nation Treatment), Article 9.4 (Market Access for Financial Institutions), or Article 9.5 (Cross-Border Trade) shall operate as a Schedule entry with respect to Article 11.2 (National Treatment), or 11.3 (Most-Favored-Nation Treatment) to the extent of that measure.
HEADNOTES
1. Commitments in these subsectors under the Agreement are undertaken subject to the limitations and conditions set forth in these headnotes and in the Schedules below.
2. In order to clarify China’s commitment under Article 9.4 (Market Access for Financial Institutions), a legal person established under Chinese law that provides financial services shall comply with the non-discriminatory restrictive regulations regarding the form of legal person (1).
3. For greater certainty, to invest in Chinese financial institutions, investors shall comply with the non-discriminatory number requirement on the holding or controlling shares of the same type of financial institutions.
4. The commitments of China under Articles 9.2 (National Treatment) and 9.4 (Market Access for Financial Institutions) are subject to the limitation that in order to establish or acquire a controlling interest in a financial institution in China, a foreign investor must own or control a financial institution that engages in supplying financial services within the same financial services subsector in its home country.
5. China limits its commitments under Article 9.9.1(c) (Non-Conforming Measures) with respect to Article 9.4 (Market Access for Financial Institutions) in the following manner: Article 9.9.1(c) shall apply only to non-conforming measures relating to 9.4.1(a) and not to those non-conforming measures relating to Article 9.4.1(b). (2)
Section A.
Entry 1-Banking
Sector: Financial Services
Sub-Sector: Banking
Obligations Concerned: National Treatment (Article 9.2) Market Access for Financial Institutions (Article 9.4)
Level of Government: Central
Measures: Law of the People’s Public of China on Commercial Banks (2015), Article 11;
Regulation of the People's Republic of China on the Administration of Foreign-Funded Banks (2019), Article 10, Article 11, Article 31, Article 44;
Detailed Rules for the Implementation of the Regulation of the People's Republic of China on the Administration of Foreign-Funded Banks (2019), Article 58;
Implementation Measures of the China Banking and Insurance Regulatory Commission for the Administrative Licensing Items concerning Chinese-Funded Commercial Banks (2018), Article 8; Implementation Measures of the China Banking and Insurance Regulatory Commission for the Administrative Licensing Items concerning Small and Medium-sized Banking Institutions in Rural Area (2019), Article 8, Article 23, Article 27.
Description:
1. Foreign investors investing in a bank shall be foreign financial institutions. In cases where foreign investors obtain controlling interests in a solely foreign-funded bank and a Sino-foreign joint-stock bank or where foreign investors investing in a rural commercial bank, rural cooperative bank, rural credit cooperative, or village bank, such foreign investors shall be foreign commercial banks (3). Foreign investors may not invest in private banks.
For greater certainty, a foreign investor who cumulatively acquires no more than 5% of the shares of a bank solely through securities transactions in domestic and overseas secondary markets shall not be subject to the restrictions set forth in paragraph 1 of this Entry.
2. A foreign bank’s branch may not engage in bank card business; a foreign bank’s branch may not conduct RMB business for Chinese citizens in the territory of China, except for the term deposits with each in an amount of no less than RMB 500,000.
Entry 2-Insurance
Sector: Financial Services
Sub-Sector: Insurance
Obligations Concerned: National Treatment (Article 9.2) Market Access for Financial Institutions (Article 9.4)
Level of Government: Central
Measures: Insurance Law of the People’s Republic of China (2015), Article 6, Article 7;
Regulation of the People's Republic of China on the Administration of Foreign-Funded Insurance Companies (2019), Article 8, Article 40, Article 41;
Detailed Rules for the Implementation of the Regulation of the People’s Republic of China on the Administration of Foreign-Funded Insurance Companies (2021), Article 3, Article 37;
Measures for the Administration of Equities of Insurance Companies (2018), Article 6, Article 15;
Notice by the China Banking and Insurance Regulatory Commission on allowing foreign investors to Operate Insurance Agency Business in China (2018);
Notice by the China Banking and Insurance Regulatory Commission on allowing foreign investors to Operate Insurance Adjusting Business in China (2018).
Description:
1. If the proportion of investment of one or more foreign investors in an insurance company is less than 25%, such one or more foreign investors shall be foreign financial institutions (except for those who purchase the stocks of an insurance company at the securities exchange), and the total assets of each foreign investor at the end of the preceding year shall be no less than USD 2 billion.
If the proportion of investment of one or more foreign investors in an insurance company is 25% or more, such insurance company is a foreign-funded insurance company (4) . The only or major foreign shareholder of foreign-funded insurance companies shall be foreign insurance companies or foreign insurance group companies, and the total assets of each shall be no less than USD 5 billion at the end of the year prior to its application for the investment. Other foreign shareholders of foreign-funded insurance companies shall be overseas financial institutions, and the total assets of each at the end of the preceding year shall be no less than USD 2 billion.
2. The shareholders of insurance agency institution must be foreign insurance agency institution that have operated the insurance agency business for more than 3 years, or China-based foreign-funded insurance companies that have started their business for more than 3 years.
The shareholders of insurance adjustment institution shall be foreign public insurance adjustment institution that have operated the public insurance adjusting business for more than 3 years, or China-based foreign-funded insurance companies that have started their business for more than 3 years.
Entry 3-Financial Assets Management Company
Sector: Financial Services
Sub-Sector: Financial Assets Management Company
Obligations Concerned: National Treatment (Article 9.2) Market Access for Financial Institutions (Article 9.4)
Level of Government: Central
Measures: Regulation on Financial Asset Management Companies (2000), Article 2;
Implementation Measures of the China Banking and Insurance Regulatory Commission for the Administrative Licensing Items Concerning Non-Banking Financial Institutions (2020), Article 115, Article 117.
Description:
1. Foreign investors may not make investment to establish financial asset management company (5).
2. Foreign investors investing in an existing financial asset management company shall be foreign financial institutions, and the total assets of such foreign investor shall be no less than USD 10 billion by the end of the year prior to its application.
For greater certainty, a foreign investor and their related parties, person acting in concert who solely or collectively hold for the first time no more than 5% of the shares of a financial asset management company without making significant influence, or who cumulatively hold no more than 5% of the shares of a financial asset management company without causing change in the actual controller, shall not be subject to the restrictions set forth in paragraph 2 of this Entry.
Entry 4-Other Banking Institutions
Sector: Financial Services
Sub-Sector: Other Banking Institutions
Obligations Concerned: National Treatment (Article 9.2) Market Access for Financial Institutions (Article 9.4)
Level of Government: Central
Measures: Implementation Measures of the China Banking and Insurance Regulatory Commission for the Administrative Licensing Items concerning Trust Companies (2020), Article 6, Article 21; Implementation Measures of the China Banking and Insurance Regulatory Commission for the Administrative Licensing Items Concerning Non-Banking Financial Institutions (2020), Article 10, Article 22, Article 25, Article 29, Article 49, Article 59, Article 112;
Measures for the Administration for Financial Leasing Companies (2014), Article 8, Article 11, Article 14;
Pilot Measures for the Administration of Consumer Finance Companies (2013), Article 7;
Pilot Measures for the Administration of Currency Brokerage Companies (2005), Article 7.
Description:
1. A foreign investor investing in a trust company shall be a foreign financial institution.
2. A foreign investor investing in a financial leasing company shall be a foreign financial institution or foreign leasing company, and its total assets shall be no less than USD 1 billion by the end of the year prior to its application, if it is a foreign financial institution (excluding commercial banks); and its total assets shall be no less than RMB 10 billion by the end of the year prior to its application, if it is a foreign leasing company.
3. A foreign investor investing in a currency brokerage company shall be a currency brokerage company, and shall have been engaged in currency brokerage business for over 20 years and have a global organization network and an information communications network as required for engaging in currency brokerage business.
4. A foreign investor investing in a consumer finance company as main investor shall be a foreign financial institution.
5. A foreign investor investing in other banking financial institutions other than a trust company, financial leasing company, currency brokerage company, consumer finance company, finance company and auto finance company shall also be a foreign financial institution, and its total assets shall also be no less than USD 1 billion by the end of the year prior to its application.
6. For greater certainty, a foreign investor and their related parties, person acting in concert who solely or collectively hold no more than 5% of the shares of listed trust companies shall not be subject to the restrictions set forth in this Entry; a foreign investor and their related parties, person acting in concert who solely or collectively hold no more than 5% of the shares of any other banking institutions (excluding trust companies) for the first time without making significant influence, or who cumulatively hold no more than 5% of the shares of any other banking institutions (excluding trust companies) without causing change in the actual controller, shall not be subject to the restrictions set forth in this Entry.
Entry 5-Asset Management
Sector: Financial Services
Sub-Sector: Asset Management
Obligations Concerned: Market Access for Financial Institutions (Article 9.4)
Level of Government: Central
Measures: Measures for the Administration of Financial Asset Investment Companies (for Trial Implementation) (2018), Article 8; Administrative Measures for the Bulk Transfer of Financial Enterprises’ Non-performing Assets (2012), Article 3;
Letter on Appropriately Adjusting Policies on Local Asset Management Companies (2016).
Description:
1. A financial asset investment company shall be formed by a commercial bank registered and formed within the territory of the People's Republic of China as its major shareholder.
2. The number of local asset management companies established in each province, autonomous region, municipality directly under the Central Government or city under separate state planning is no more than two. A local asset management company shall not carry out the batch purchase and disposal of non-performing assets of financial enterprises from outside the provincial-level administrative region where it is located.
Entry 6-Securities Companies (6)
Sector: Financial Services
Sub-Sector: Banking and other Financial Services (excluding insurance)