China Considering to Set up Special Trade Area: Long Yongtu

Home>>Business

Last updated at: (Beijing Time) Thursday, November 29, 2001

China Considering to Set up Special Trade Area: Long Yongtu

The Chinese government is thinking of building a special trade area comprising the Chinese mainland, Hong Kong and Macao. The establishment of such an area, which has been proposed by Hong Kong Chief Executive Tung Chee Hwa, is totally in line with the WTO regulations and is in the interest of the trade among the three places, vice-minister of foreign trade Long Yongtu said.

WTO Regulations and Interest of Places Promised

The establishment of such an area is totally in line with the WTO regulations and is in the interest of the trade among the three places. The idea of such a free trade zone does not violate the principle of the World Trade Organization (WTO), Long said on the sidelines of the 14th General Meeting of the Pacific Economic Co-operation Council (PECC) in Hong Kong.

Mainland-HK Economic Ties Closer

A free trade zone would probably play an active role in bringing mainland-Hong Kong economic ties closer. Macao, another SAR under the "One country, two systems" principle, should have no problem to join the free trade zone, Long said.

It would be difficult, however, to hold any free trade zone talks with Taiwan, which has shunned the issue of resuming the direct three (trade, transport and postal) links across the Taiwan Straits, he said.

Fair, Open & Free Market to Be Developed

The new situation after China's WTO accession calls for a new pattern of economic relations among the mainland, Hong Kong and Macao, Long said.

China will play an important and constructive role in the future WTO talks after its entry into the world trade bloc and will develop a more fair, open and free market, which will benefit all the WTO members, he said.

Mike Moore, director-general of the WTO, shared the view that such an idea is in line with WTO rules.

He cited the examples of the European Union and the North America Free Trade Zone at a press briefing at the PECC conference.

Earlier this month, China and 10 Southeast Asian nations agreed to set up a free trade zone area within 10 years.

Experts said establishment of the free trade zone will give an impetus to Hong Kong's economy, which is experiencing the pain caused by restructuring and the global economic slowdown.

Shenzhen Special Economic Zone