Q: Some countries argue that China has not fulfilled its
WTO commitments. Three years after entry into the WTO, what is the
situation? What kind of positive significance China's entry has on
its economic development?
A: There is an old saying in China: Be true in word and resolute
in deed. China will strictly adhere to every commitment it has
made. In the past three years, the country carried out every
commitment promised to the WTO. This adherence is reflected in the
following four aspects.
Firstly, tariffs imposed by China have been further reduced.
Statistics show that after China's entry into the WTO, the general
level of tariffs decreased to 10.6 percent in 2004 from 15.6
percent in 2000, with the average tariff on industrial commodities
being 9.5 percent and that on agricultural products 15.8 percent.
In terms of non-tariff measures, China called off the quota
licenses of 39 taxation categories. In accordance with the
information technology (IT) agreement, the tariff on all IT
products was reduced to zero in 2005.
Secondly, the market has been further expanded. In the past few
years, the total foreign volume increased to US$1,154.8 billion in
2004 from US$620.8 billion in 2001. The import volume rose by 21
percent in the first year after China entered the WTO, 40 percent
in the second year and, despite a macro-control, 35.7 percent in
2004.
Thirdly, foreign trade managerial authority has been completely
liberalized. China committed that in the three years after entering
the WTO, Chinese enterprises, foreign companies and individuals as
well as sole proprietors in the WTO's member States would be
allowed to engage in the import and export of all commodities in
China. This commitment has been affirmed in the revised Foreign
Trade Law of the People's Republic of China in 2004. Currently, an
equal competition environment has initially been formed among all
proprietors of foreign trade entities.
Fourthly, China has been working to improve the legal system and
the investment environment. Over the past three years, relevant
departments of the Chinese Government have cleared more than 2,300
laws and regulations, of which more than 320 have been revised by
the National People's Congress, the State Council, or relevant
departments and more than 830 have been abolished, involving
commodity trade, service trade, intellectual property rights,
investment and others. At the same time the local governments at
all levels have abolished or revised more than 190,000 local rules
and regulations as well as other policies and measures in
accordance with WTO trade rules and China's commitments.
Additionally, China has conscientiously carried out commitments
to open service trade, including finance, insurance,
telecommunications and legal services. By the end of 2004, 62
foreign banks from 19 countries had established 204 representative
offices or branches in China, 105 of which gained permission to
handle RMB business. A total of 40 foreign insurance companies set
up 70 joint ventures in China. In terms of retailing, more than 200
foreign companies had built up more than 4,000 retail centers in
the country. With regard to intellectual property rights
protection, China has also made an enormous effort in updating the
trademark law, the patent law and the copyright law. In some
aspects, the protection level has matched that of the developed
countries.
In 2002 and 2003, China received two transitional checks by 17
institutes organized by the WTO concerning the country's
implementation of its commitments. The cooperative manner and great
amounts of work done by China, especially the achievements and
efforts, won praise from WTO members.
Chinese entry into the WTO has had a positive impact on its
economic development. In the past three years, the country's
national economy continued to grow with an annual GDP growth rate
of 8 percent or higher. The volume of import and export jumped to
more than US$1,000 billion from US$600 billion, making China the
third largest trade country in the world. As well, China's better
trade environment provides an excellent environment for foreign
investment. The perfection and transparency of domestic laws and
regulations has greatly encouraged foreign investment in China.
During the past three years, actual foreign investment reached more
than US$50 billion annually, which has motivated economic
development of China.
The gradual opening of the service trade has brought a new
appearance to such fields as finance, insurance,
telecommunications, law, accounting, education, construction and
tourism and increased the scope and raising the levels of the
service industry. Consumers have benefited more and business
operators have improved their competitiveness in the process. The
service industry has provided more jobs for the people and the
comprehensive national strength of China and its position in the
world has further improved.
Shi Guangsheng, Minister of Foreign Trade
and Economic Cooperation, signs the agreement on behalf of the
Chinese Government on China's entrance into the World Trade
Organization on November 11, 2001.
