China seeks mutual benefit, common development with other countries: white paper

China seeks mutual benefit and common development with other countries while developing its economic and trade relations with them on the basis of equality, mutual benefit and reciprocity, said a white paper released in Beijing on Thursday.

Since its accession to the WTO in December 2001, China has strictly kept its commitments to create more favorable conditions for international economic and technological cooperation, said the white paper, titled "China's Peaceful Development Road" and published by the Information Office of the State Council.

China has continuously stepped up participation in regional economic cooperation, with the building of the China-ASEAN Free Trade Area going full steam ahead, the paper said.

At present, the building of the Shanghai Cooperation Organization is proceeding with comprehensive and pragmatic cooperation, and its process to facilitate trade investment has been launched in an all-round way, it said.

China has also initiated negotiations on such free trade areas as the China-Southern African Development Community, China-Gulf Cooperation Council, and China-New Zealand, China-Chile, China-Australia and China-Pakistan, and signed relevant agreements with its partners, the paper said.

China is also an active and pragmatic participant in the activities of the Asia-Pacific Economic Cooperation, Forum on China-Africa Cooperation, Sino-Arab Cooperation Forum, Asia-Europe Meeting and Greater Mekong Subregion Economic Cooperation Program, said the white paper.

China sticks to the principle of mutual benefit and win-win cooperation, tries to find proper settlement of trade conflicts and promotes common development with other countries, said the paper.

When promulgating and implementing domestic economic policies, China tries to take international factors and influences into account as well as the impacts its own economic growth imposes on the outside world. Based on its reform and development, China is serious in judging the effects its exchange rate reform may bring to surrounding countries and regions, and the global economy and finance, the paper said.

The white paper said China has thus advanced the reform in a steady way, adopted a managed floating exchange rate regime based on market supply and demand, and linked and adjusted it according to a basket of currencies, so that the Renminbi exchange rate will remain stable at a reasonable and balanced level.

China has also intensified its protection of intellectual property rights, improved the relevant legal system, and tightened up law enforcement to crack down on all kinds of violations, the paper said.

The white paper stressed that the growing China provides good opportunities and a huge market for the rest of the world. Along with economic and social progress, as well as the improvement of the living standards of its people, China's demand for capital-, technology- and knowledge-intensive products keeps increasing, offering great opportunities for foreign products, technologies and services, as the country has now evolved into an internationally acknowledged big market.

By importing cheap but good-quality products made in China, the importing countries can reduce their expenditure and pressure caused by inflation while satisfying the demands and enhancing the welfare of their consumers, the paper said.

China's labor-intensive products enjoy unique comparative advantages in the global market. Consumers in the United States have saved 600 billion in the past decade and nearly 100 billion U.S. dollars in 2004 alone, by buying Chinese commodities, said the white paper.

In 2004, the white paper said, China became the world's third largest importer, next only to the United States and Germany, with 148.47 billion U.S. dollars of increased imports or nine percent of the world's total growth of imports.

The huge market of China offers such great opportunities for international capital that investors around the world have benefited from China's rapid economic growth, the paper said.

From 1990 to 2004, foreign investors repatriated 250.6 billion U.S. dollars in profits from China. A survey by the American Chamber of Commerce-People's Republic of China this year shows that 70 percent of American firms are making profits in China, and about 42 percent report a higher profit rate than their global average.

China's growing investment abroad has also fueled the economies of the destination countries. At the end of 2004, China's net non-banking direct investment abroad amounted to 44.8 billion U.S. dollars, spreading to 149 countries and regions, said the paper.

China's foreign economic and trade cooperation has tremendous potential and boosts bright prospects, the paper said.

In the post-WTO era, China imported 500 billion U.S. dollars worth of commodities annually during the period from December 2001 to September 2005, which meant 10 million jobs for the countries and regions concerned.

By 2020, the scale and total demand of the Chinese market will quadruple that in 2000. During the process, the rest of the world will find development and business opportunities in their reciprocal cooperation with China, which will greatly accelerate the growth of the global economy, the white paper said.

Source: Xinhua

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