"The light industry is to face both opportunities and challenges after China enters the World Trade Organization (WTO)," said Chen Shineng, director of the State Administration of Light Industry at a national conference for light industry in Beijing on Deceomber 6.

"Basically, China's light industry enterprises are competitive and overseas investment now accounts for a considerable proportion of the industry," said Chen. China leads the world in the output of many light industry products, he added.

Chen believes that after China enters WTO, light industry exports will increase coupled with less tariffs and the cost for many products will drop considerably. WTO entry will also facilitate Chinese enterprises to set up branches abroad and upgrade technology by utilizing more overseas funds.

However, large quantities of sophisticated light industry products will pose threats to domestic enterprises. China also lags behind in management and personnel training.

According to Chen, related departments have conducted research on what China's entry into WTO will mean for its light industry and is keeping a close eye on the latest terms of the WTO agreement.

Chen has urged light industry associations to play a more active role. (Xinhua)