China's WTO Entry
China to Firmly Honor WTO Entry Commitments

Chinese Vice-Premier Wu Bangguo said in Xiamen on Saturday that China will implement the commitments it has made in a responsible manner after it enters the World Trade Organization. Wu made the statement at the International Investment Forum of the Fifth China International Fair for Investment and Trade, which opened in the eastern coastal city of Xiamen Saturday morning. Following are the highlights of Wu's speech:

hina has made unswerving efforts to gain accession to the WTO over the past 10-odd years. The country has clearly demonstrated its commitment to reform and opening-up and its sincere wish to be a part of the new global economy.

Three factors indicate that China is ready for entry into the WTO: its economic modernization drive; the establishment and improvement of its socialist market economic system; and the country's broad and deep involvement in international competition and cooperation.

At present, all relevant negotiations have basically been concluded, which means China's accession will soon become a reality.

After the accession, China will implement the commitments it has made in a responsible way. China will further improve foreign-related laws and regulations and create a solid legal environment. It will continue improving the work of government, enhancing efficiency and nurturing a stronger sense of service among officials so as to create a favorable administration environment, and will keep on rectifying the order of the domestic market, combating infringements of the law and counterfeiting, and protecting intellectual property rights so as to create a market environment characterized by openness, fair competition and orderly operation.

China will provide greater market access for trade in goods and gradually open trade in services and such infrastructure sectors as energy, transportation and communications.

Over the past few years, China's attraction of foreign investment has maintained good momentum with an annual FDI (foreign direct investment) input of around US$40 billion. The influx of foreign capital has played an important role in stimulating domestic investment demand, encouraging China to carry on the reform of the economic system and to open wider to the rest of the world, and promoting the sustained, rapid and healthy development of China's national economy.

We should also take note that the Chinese economy has undergone tremendous transformation. Consequently, many new circumstances have emerged with respect to the utilization:

China has changed from a seller's market into a buyer's market. Most production and consumption materials are oversupplied and the general processing industry is troubled by excessive capacity.

The structural environment of economic development is very different from what it was in the past. The socialist market economic system has taken shape and the market is increasingly playing a fundamental role in the allocation of resources.

Opening-up has entered a new stage, with the domestic economy linking closer with the world economy.

In this context, our efforts in attracting foreign investment should be focused on improving the overall quality of the national economy, enhancing international competitiveness and the capability to withstand risks.

We will change, as appropriate, the way we work and our focus. The encouragement of foreign investment should be integrated with economic restructuring, industrial upgrading and optimization, as well as improvement of corporate efficiency. It should serve the purpose of improving the socialist market economic system and strengthening companies' international competitiveness.

Furthermore, it should contribute to export expansion and the development of an export-oriented economy. During the course of these changes, it is imperative to absorb overseas capital. More importantly, we shall pay greater attention to the introduction of advanced technologies, modern management expertise and specialized personnel so as to improve the quality and level of foreign investment utilization.

After WTO entry major effort should be put into the following areas:

Channeling foreign investment into the right places. Rather than focusing on general processing trade, we should give more attention to the high-tech industry, those industries with advanced technologies that are in demand, as well as service industries.

Encouraging multinational corporations to help Chinese State-owned enterprises to reorganize and upgrade so as to facilitate the strategic reorganization and restructuring of these SOEs.

Encouraging foreign-invested companies to expand exports and developing domestic supporting industries. We shall delegate more trading rights to foreign-invested companies to propel an open economy.

Implementing the policies that encourage foreign investment in the central and western regions of China so as to accelerate the development of these regions.

Creating a more favorable external environment for foreign investors, including such things as policies and laws in the soft environment and such things as infrastructure in the hard environment.

At the same time, we will also carry out the opening up strategy of "going global" and will encourage qualified companies to invest overseas. In this way, we can integrate "attracting foreign investment" with "going global" and participate in international economic cooperation in a more comprehensive way.

China will become even more open in the 21st century.

Beijing has succeeded in winning its bid to host the 2008 Olympic Games. This, coupled with the imminent accession to the World Trade Organization, will add impetus to China's reform, opening-up and economic development.

(Xinhua News Agency September 10, 2001)

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