Worry about China's success uncalled for: dialog

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Last updated at: (Beijing Time) Thursday, September 18, 2003

Worry about China's success uncalled for: dialog

On September 14, at the "International Dresses & Accessories Culture Seminar" of the 15th Dalian International Fashion Festival, Long Yongtu, secretary-general of Boao Forum For Asia and the then chief negotiator in China's entry into the World Trade Organization (WTO), met Mike Moore, former director-general of the WTO, and the two exchanged views on China's the WTO accession and development.

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Advantages of joining WTO

China's WTO entry marks a new stage of its opening up to the outside world, said Long Yongtu. It is a new starting-point not only for expanding opening up and going global, but also for deepening reforms and improving the system of the socialist market economy.

Mr. Moore pointed out that China's textile products are quite competitive in the world, but the nation's trade was not protected by rules before its WTO accession. After its entry into the organization certain business operations become foreseeable, and WTO rules can help avoid mutual misunderstandings and harm if disputes arise.

What does China's success mean?

Talking about China's success, Mr. Moore said that China is the world biggest consumption market, with its imports exceeding exports in recent years and thus bringing trade deficits. In the next two decades, the nation's trade volume will be three times what it is today. Many people showed anxiety about China's success, but in fact their worries are unnecessary. China is an importer with a huge market, a textile giant and at the same time, the world biggest food importer. China's success may bring success to other countries. "My views were proven in the last two years", he added.

Long Yongtu believes that China's WTO entry is symbolic of the rise of a new century, but success would also bring us many difficulties and troubles. However, these questions can be clearly explained. China is a large producer and exporter, as well as an importer with the largest market. From this point of view its WTO accession is of great benefit to the world. We want to prove to the world that China's economic development and prosperity will provide the rest of the world with a vast market and development opportunities; China's rise and success is a huge contribution to the world economy.

Work hard for making fair regulations

There certainly exists unfairness in treaties signed by any international institutions and organizations, noted Mr. Moore. He reminded Chinese enterprises that they should not boycott the WTO and thus close themselves to it, but instead should learn to adapt themselves to WTO rules and, making it a step to lift themselves, and learn to introduce the behavior mode of modern enterprises. Only by doing so can Chinese enterprises finally develop into competitive ones of world level. Now many domestic enterprises don't quite understand WTO rules, so many foreigners are watching China and are ready to attack if the latter violate rules. Scholars and officials, in the opinion of Moore, should make efforts and contributions to making fair trade rules.

Long Yongtu agreed with the views of Moore, saying that in some places and enterprises, rules are not used to develop themselves, but to guard against others. Some companies only study how to oppose others' anti-dumping and how to bar foreign products outside the country. It is right to conduct necessary guard and defense according to rules, but the more important thing is to go global. Enterprises should firstly focus on enhancing their own competitiveness, instead of weakening others' competitive power, then seek for self development. We must recognize existing rules, but we must not let unfair rules continue. The continuous negotiations held by the WTO are all for the purpose of solving the question of unfairness.

Both Long Yongtu and Moore focused their attention on the question of "brand". According to Moore, the reason of world people going after brand products is their unique standard. Coca Cola has the same standard for its products worldwide. Long Yongtu took an ordinary tie for example, which, if put under a brand, could sell at a price several dozen times higher. The Whiskey of New Zealand is of similar quality to that of France, but the latter's price is many dozen times higher. Even so people flock to buy brands, so the marketing of brand products is very important.

By PD Online staff member Li Heng

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