China to Open Wider to Outside World

Premier Zhu Rongji said China shall take a more active stance in opening itself wider still to the outside world and will resort to more effective measures in 2000 to promote the expansion of foreign trade and utilize more foreign funds.

In his work report at the opening meeting of the current session of the Ninth National People's Congress (NPC), Zhu said that the overall trend in the world's economic and trade situation is getting better. The process of China's entry into the World Trade Organization (WTO) has been accelerated. Zhu said that "we must also be active in seizing new opportunities and meeting new challenges."

On foreign trade sector, he said China will continue to carry out the strategy of winning success through quality and market diversification and make great efforts to expand exports. First, the mix of exports should be adjusted by increasing the proportion of electromechanical products, accelerating the upgrading and updating of such traditional export commodities as textiles, garments and other light industrial products, and working to increase the proportion of high-tech products. Agricultural exports should also be increased.

Second, China should work actively to open up more markets abroad. In particular, strong efforts should be made to open up emerging markets in Africa, Latin America, Eastern Europe and the Commonwealth of Independent States, and actions should be taken to develop economic and trade relations with neighboring countries and other developing countries.

He said that Chinese enterprises which are relatively strong should be encouraged to make investments and set up factories abroad, engage in processing trade and exploit natural resources through cooperative agreements. Overseas contracted projects and labor services should be further expanded.

The premier further noted that reform of the foreign trade system should be deepened. Export-oriented enterprises should set up management mechanisms for expanding access to international markets and improve their internal management. More producers should be allowed to engage in export on their own. The number of types of export commodities subject to voluntary quotas should be reduced and quota management and bidding methods should be improved.

"We should utilize foreign funds effectively. The spheres of activity and geographical regions open to foreign businesses should be expanded," he said. Commerce, foreign trade, banking, insurance, securities, telecommunications, tourism and intermediary services should gradually be opened to the outside world.

Restrictions on foreign investment pertaining to technology transfer, the proportion of products to be sold domestically and share of holdings in some industries should be relaxed. Foreign businesses should be encouraged to invest in agriculture, infrastructure development, the environmental protection industry, and high and new technology industries, he said.

Moreover, vigorous efforts should be made to draw investment from transnational corporations, especially in research and development and in the reorganization and technological upgrading of state-owned enterprises, Zhu said.

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