1. With the WTO entry nearing, China's publishing industry shallwill take the lead in opening its book-retailing market. Though the final agreement has not come out yet, themajority of industrial insiders believe that China will open its book retailing market around 2001. We should first take precautions and make clear what requirements concerning the opening up of book retailing will appear on the WTO agreement. Then, we should predict the most possible ways for foreign book distributors to enter China'sthe domestic market.

2. Despite most WTO mMembers take moderate protections for their domestic publishing industries, distributions of publications are actually opened to foreign investors. Nonofficial information shows that China has agreed with the United States to allow foreign capital to enter its publications distribution marketbusiness.

3. The Sino-US bilateral agreement on China's accession to the WTO stipulates that China shall allow foreign investors to distribute audio and video products, books and magazines through Sino-foreign joint ventures. According to the agreement, China has to open itsthe retail market in 2001, and its wholesale market in 2003. China will allow foreign investors to take a 49% share in Sino-foreign publications distribution joint ventures. In addition, China promised to open the telecommunications industry, allowing foreign investors to participate ISP and ICP business through joint ventures with a share below 49%.

(Source: Chinese Readers' Newspaper)