The Government of Australia and the Government of the People's Republic of China
Joint statement on the on-line economy and electronic commerce
Canberra, 8 September 1999
The Government of Australia and the Government of the People's Republic of China (hereinafter referred to as both
parties) accept that the growth of the on-line economy is a significant development in global economic relations and
benefits both countries, especially in the conduct of international business. Electronic commerce, in particular, allows
access to new markets, improves the quality of services, encourages innovation, fosters more efficient supply and
distribution, and further promotes the development of commerce between the two countries. These benefits should
accelerate economic growth around the world.
I. PURPOSE
This joint statement is intended to promote the development and growth of the on-line economy and electronic commerce
in both countries by:
a.promoting a dialogue between Australia and the People's Republic of China on electronic commerce issues;
b.building confidence with governments, businesses and consumers in electronic commerce;
c.facilitating the establishment of a clear legal framework for the on-line economy and electronic commerce;
d.fostering technology transfer and cooperation between the two countries in areas of the on-line economy and
electronic commerce;
e.supporting and endorsing the following principles and policies, which should guide the development and growth of the
on-line economy and electronic commerce.
II. POLICY PRINCIPLES
Both parties endorse the following principles:
a.The public and business sectors should cooperate in the development of electronic commerce and in establishing
business practices, both domestically and internationally.
b.Based on clear legal frameworks for electronic commerce, governments should also encourage effective self-regulation
by business through codes of conduct, model contracts, guidelines, and enforcement mechanisms developed by the business
sector.
c.In developing and planning worldwide electronic commerce, consideration should be given, and joint efforts made, to
narrow the gap between the developed and developing countries.
d.Cooperation and harmonisation among all countries, from all regions of the world and all levels of development, will
assist in the construction of a comprehensive global environment for electronic commerce.
III. POLICY APPROACHES
Both parties will encourage their responsible agencies to adopt the following approaches to key areas of the on-line
economy and electronic commerce:
1. Taxes and Tariffs
Rules affecting the taxation of the Internet and electronic commerce should be neutral, fair, clear, efficient, and
easy to control, manage and be understood by the public.
Both parties will cooperate closely to ensure effective and fair administration of their tax systems in relation to
electronic commerce, including the prevention of tax evasion and avoidance. In support of this, national tax authorities
in Australia and the People's Republic of China should continue to consult and cooperate on taxation issues associated
with electronic commerce in international fora in which they are members and at a bilateral level in accordance with the
exchange of information provisions of the 1990 Australia-China Double Tax Agreement.
2. International Fora
Both parties will work in the international fora in which they are members to promote policies and initiatives which
foster the development of electronic commerce and the growth of the global on-line economy.
3. Business and Consumer Confidence
Both parties recognise that it is essential that business and consumers have confidence in electronic transactions.
Developments in this area should recognise the importance of business sector initiatives and should promote both a
competitive market for and user confidence in electronic payment systems. There should be effective protection for
consumers who use electronic commerce.
4. Content
As the Internet is a medium for promoting, in a positive way, diffusion of knowledge, cultural diversity and social
interaction, as well as a means of facilitating commerce,
a.Governments should not prevent their citizens from transmitting or accessing information simply because it is
published on-line in another country. Each government is responsible for the rules concerning transmission of, and
access to, on-line information by its own citizens.
b.Where users do not wish to receive certain types of content (such as that which is unsuitable for children),
filtering/blocking systems or other tools should be made available by service providers. Industry self-regulation will
assist in the promotion of content labelling.
c.On-line service providers should work with domestic law enforcement authorities as well as with their international
counterparts to stem the transmission of illegal content. Meanwhile, on-line service providers will need to deal
appropriately with complaints about prohibited content.
d.Both parties will encourage international cooperation between law enforcement authorities to prevent, investigate and
prosecute illegal activities on the Internet and the use of electronic commerce for criminal purposes.
5. Government Services and Information
Both parties believe good administration will be promoted by governments pursuing excellence in the on-line delivery of
government services and information. This should be done in a way that reflects the needs of citizens and minimises
bureaucratic processes. Governments can act as role models and market catalysts in developing the on-line economy.
6. Internet Governance
Both parties acknowledge that policy development in all areas of Internet governance should comprehensively engage
industry interests. The Internet succeeds in great measure because it is a decentralised system that encourages
innovation and diversity in information services. Where possible, market mechanisms that support competition and
consumer choice should drive the management of the Internet. This will lower costs, promote innovation, encourage
diversity and enhance user choice and satisfaction.
7. Domain Name System (DNS)
Both parties welcome the establishment in accordance with government wishes of the independent, non-governmental
Internet Corporation for Assigned Names and Numbers (ICANN) to manage the global domain system. At the same time, in the
light of the rapid world-wide expansion of Internet, both parties encourage consultation with the relevant international
organisations to ensure that long-term arrangements for global DNS and address management represent the diverse
interests of all nations and Internet stakeholders. Both parties acknowledge the need for further work in international
fora to address the issue of domain names and trade marks (including well-known marks).
8. Intellectual Property Rights
Both parties consider that growth of the on-line economy and electronic commerce depends on the adequate protection of
intellectual property rights (IPR). Both parties will support moves in international fora that may assist in further
strengthening of on-line intellectual property protection.
9. Infrastructure
Both parties consider that the supporting telecommunications infrastructure for on-line transactions must be
technically and commercially suitable, particularly in terms of adequate bandwidth and competitive pricing. Governments
should positively endorse all means for provision of infrastructure and telecommunications services within a regulatory
framework that encourages competition.
IV. ACTION AGENDA
Recognising that bilateral cooperation can complement the development of essential multilateral frameworks, both
parties will:
a.Coordinate their policies on electronic commerce and the information industries through such mechanisms as the
Working Group for Information Industry and Telecommunications under the Australia-China Joint Ministerial Economic
Commission.
b.Strengthen cooperation and exchanges on regulatory and technical development issues through specific arrangements
between relevant ministries of both parties; in particular the Ministry of Information Industries of the Peoples
Republic of China and the Department of Communications, Information Technology and the Arts of Australia.
c.Work with business and consumer groups in both countries to promote dialogue, cooperation and further action on the
issues contained in this statement.
d.Continue to cooperate closely at relevant international fora such as APEC and