GM Leaders Urge Congress to Give China Permanent NTR

Leaders from General Motors, the largest automobile enterprise in the United States, have voiced strong support for China's accession to the World Trade Organization (WTO) and urged the US Congress to approve the country a permanent normalized trading status.

"The business community strongly supports the agreement between the United States and China on trade and China's entry into the World Trade Organization. We hope to see the mission accomplished," said John F. Smith, Jr., Chairman and CEO of General Motors.

In an exclusive interview in Washington on Tuesday with Xinhua and some other Chinese journalists, Smith said that his company backs up China's entry into the WTO because it is "healthy and good" for both countries and "in the interest of the world."

After China enters the WTO, tariffs for automobile imports will be cut down four times that of the current level. At that time, "We'll produce cars many Chinese people cannot afford to buy today," Smith said.

"Also I believe we'll see automobile financing come to china in a major way, and that is an area we would participate in as we have done all over the world. That will really create a huge automobile market over time, producing a major expansion of the automobile businesses both in China and the United States," he said.

Smith, however, pointed out that some Congressmen and specific interest groups, including the Automobile Union, are opposed to giving China permanent Normal Trade Relations (NTR).

"So it's not a easy task, but everyone of us is working very hard to have that done," the GM chairman vowed.

Meanwhile, Richard Wagoner, Jr President and Chief Operating Officer of GM, told Xinhua that his company has been "in a leadership position" for championing improved trade relations with China.

"We feel strongly that china should have a seat at the WTO and be given permanent normalized trading relationships," Wagoner said.

"It's a right thing for the global economy, it could help China achieve its objective of development, and it's also the right thing for the United States too," he added.

Wagoner said GM will provide continued support for the enhancement of US-China trade relations. "We are hopeful that China's permanent NTR will be approved by the US Congress so that we can proceed on the important business of working closely with the Chinese to develop their economy," he said.

Lawrence B.Zahner, Jr GM China Group President, also said that accession to the WTO will help China build an automobile industry that would "create wealth for both China and the United States" in the long run.

"As we begin to build cars and trucks in China, we'll buy supplies in the United States and ultimately create jobs here in the United States," he said.

GM has invested over two billion US dollars (or RMB 16.5 billion) in three joint ventures in Shanghai and Shenyang, two major industrial cities in China, involving more than 2,000 employees. The company has also set up two automotive technology institutes in Beijing and Shanghai to promote technology exchange and train employees. In Addition, GM now has six parts distributors and authorized service centers across China to offer services to its local customers. (Xinhua)


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