Targets for Phase II

1. Continue to assist China in considering and implementing integrated trade and environmental policies and measures that support sustainable development;

2. Suggest actions and measures to enhance institutional building and coordination at national and local level relating trade and environment matters;

3. Determine China's perspective on international rules on foreign direct investment and consider in detail the actions required to advance the role of foreign direct investment in promoting sustainable development;

4. Continue to determine impacts of selective foreign environmental standards and other measures on China's trade in certain sectors;

5. Monitor the development of concerns with trade and environment in various international and regional forums and assess implications for China;

6. Raise awareness on the importance of trade and environment of governmental officials in charge of trade and environmental protection, of entrepreneurs of trading and of manufacturing companies;

7. Provide support for China to explore and define workable approaches to addressing climate change through market-based mechanisms and technology transfer, in particular through the Clean Development Mechanism of the Kyoto Protocol;

8. Promote environmental technology transfer.

Implementation Plan for the Next Three Years

1. A comprehensive policy review on the interaction of China's foreign trade and environmental policies (addressing Target 1 and 2);

2. China's perspective on existing and proposed international rules on foreign direct investment and sustainable development (addressing Target 3);

3. Monitoring and assessing trade and trade and sustainable development activities and issues related to China in international and regional organizations such as WTO, UNEP, UNCTAD, OECD, NAFTA and APEC (Target 5);

4. A study on the impact of selected foreign environmental standards on China's trade: case study on EU's and Japanese textile standards (Target 4);

5. A study on international trade in clean coal technology: obstacles, opportunities, and strategies for China (Target 7 and 8);

6. A follow-up study on activities implemented jointly in the context of the Clean Development Mechanism of the Kyoto Protocol (Target 7 and 8);

7. Workshops on trade and development for governmental trade and environmental officials, trading companies and trade-oriented enterprises (Target 6).

Implementation Schedules

Project 1 (Target 1 and 2) - to be completed during the third year of Phase II;

Project 2 (Target 3) - to be completed during the second year of Phase II;

Project 3 (Target 5) - throughout the entire course of Phase II;

Project 4 (Target 4) - to be completed during the second year of Phase II;

Project 5 (Target 7 & 8) - to be completed during the third year of Phase II);

Project 6 (Target 7 & 8) - to be continued during the first three years of Phase II);

Project 7 (Target 6) - throughout Phase II, if funding is available.