Shi Guangsheng, Minister of Foreign Trade and Economic

Cooperation (MOFTEC), said the entry marks the beginning of a new stage of China's reform and opening-up. China is confident in its ability to grasp opportunities and face challenges, he said.

Actually, most Chinese industries are familiar with

international competition. In China's 15 year-history of applying for WTO membership, many foreign-funded enterprises have participated in the Chinese economy. Their branches or joint ventures have entered into heated competition with Chinese

corporations in information-related products manufacturing,

banking and insurance industries.

Chinese-funded insurance companies have promoted their products' variety, quality and quantity since the 1990s, a source with the Shanghai branch of China's Life Insurance Company said, noting that competition led to the establishment of Shanghai's insurance industry association, which effectively maintains ann orderly market.

The source said the entry of foreign funds into Shanghai's

insurance market isn't worrisome, and the Chinese companies have

resolved to get more customers and enlarge markets through

improving service.

As for automobile manufacturers, the practice of making and

selling cars with approval from the government has been abolished. Any enterprises meeting technological and quality standards can join the game.

In stock markets, Chinese citizens are authorized to enter the B share market, which used to be open only to overseas investors. Foreign-funded enterprises also have opportunities to participate in the restructuring of Chinese state-owned enterprises.

In the past 15 years, Chinese industries familiarized

themselves with WTO rules and absorbed experience of foreign

competitors. China made remarkable progress in adjusting the

structure of its textile, petrochemical, telecommunications,

banking and insurance industries as well as agriculture.

Chinese corporations are learning managerial ideas, models and experience from foreign enterprises, and make innovations in light of local conditions. Chinese Gold Cereal Supermarket Management Co., Ltd. is now setting up chain stores nationwide, and has founded an on-line business center.

Chen Huai, a well-known Chinese economist, said China doesn't

enjoy an advanced market economy. Compared with the same foreign

industries, many Chinese industries are in disadvantageous

positions in management, funding, technology, quality of personnel and overall expertise. Different industries will benefit differently, and some may meet great difficulties, Chen predicted.

The information industry is one of the first Chinese industries to face international competition, said Liu Chuanzhi, president of Legend Group, a well-known computer corporation. The current Chinese computer market has been internationalized, and the entry will not affect many Chinese computer manufacturers.

The textile industry will enjoy an expansion of export markets after the entry. But Chinese companies still have to adjust industry and product structure on the basis of market demand, industry experts said. Since China meets challenges both from developed countries in brandname clothing and from developing countries in medium and low-quality products, it needs to set up large-scale textile groups, creating its own recognizable brands, they noted.

Zhang Hanlin, a Chinese expert on WTO and vice-director of the

WTO research center of University of International Business and

Economics, said the opening of Chinese markets is a step-by-step

process, and all industries will go through a transitional period.

Chinese enterprises should make full use of this period, and be well-prepared for WTO entry. "There is still a long way to go

before the establishment of an open, fair and unified Chinese

market," Zhang said.

(Xinhua News Agency November 11, 2001)