Firms Should be More Competitive for WTO Entry

Chinese enterprises should enhance their competitiveness to welcome the opportunities and meet the challenges that will come with China's expected admission into the World Trade Organization (WTO), according to an article carried in Monday's People's Daily.

The signed article points out that a correct understanding of these challenges and opportunities forms the basis by which enterprises can formulate their decisions.

"For Chinese enterprises, China's entry into the WTO offers a precious chance for them to equally participate in competition and strive for development amid this competition," the article says.

China's entry into the world's largest multinational trade organization is conducive to the introduction of foreign capital, advanced know-how, and management expertise into Chinese enterprises, it says, adding that all these combined will give impetus to technical innovation and structural adjustment in Chinese enterprises.

According to the article, a marked decrease in tariffs after China's WTO entry will bring down the cost of imports, providing advantageous conditions for exported-oriented enterprises to lower costs and increase competitiveness.

With China becoming a WTO member, the article says, Chinese enterprises can improve their cooperation with multinational corporations and make use of the sales channels and marketing networks of multinationals to enter the global marketplace.

The article also reminds Chinese enterprises to "soberly see the difficulties." China's WTO entry requires that the country adopt more bold non-tariff measures, further open up the domestic market, and soften the terms and open more fields for market access, thus lowering the threshold by which overseas enterprises can enter the Chinese market.

Whether an enterprise can grow and prosper under fierce competition or not will depend on its competence and competitiveness, the article says.

It also urges Chinese enterprises to speed up construction of a modern enterprise system, take resolute measures to reform the management mechanism, and expand business operations to an appropriate scale in order to win competition in the international marketplace.

More effort also should also be put into promoting technical innovation, improving technical creativity, and increasing market exploration.

To that end, the article says, the government and all of society should support China's enterprises and help them to meet these challenges. Their long-standing problems such as redundant workers and heavy debt burden must be resolved. More laws and regulations also should be promulgated to maintain a sound market order and create an environment of fair competition, the article concludes.

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