China to Uphold Opening-Up PolicyChina's chief WTO negotiator Long Yongtu said Thursday that China will conform to international standards and practices in the process of merging itself into the global economy.Addressing a symposium on WTO and enterprise management in Shanghai, Long said China will take the initiative to promote economic globalization, which is fundamental to the country's prosperity. The 13-year-long negotiations for China's WTO entry are preparation for taking part in globalization, he added. China has just reached an agreement with the European Union on its entry to the World Trade Organization (WTO). The U.S. House of Representatives adopted the bill on permanent normal trade relations (PNTR) with China on May 24. Long underlined three priorities in China's participation of globalization, stressing the importance of a market economy, implementation of opening-up policies, and conforming with international practices. The WTO entry poses a great challenge to China's economic administrations as the government must change its functions to cater to requirements of the market economy. China has pledged to reduce government intervention in corporate affairs in its WTO negotiations, and urged enterprises to protect themselves with regulations and rules, said Long. The substantial reduction in tariffs and removal of many non- tariff barriers that China has committed itself to in WTO negotiations, will lower company costs in the global arena and may facilitate the growth of Chinese enterprises. China has recently joined the Agreement on Information Technology and promised to remove tariffs on more than 300 key information technology products within five years. Long hopes this move will spur multinationals to invest in China's IT sector, which may help China merge into the global IT industry. Instead of covering all sectors in production, Chinese companies should make themselves one part of the global production and sales framework, he said. For instance, while China aims to establish its own auto industry, it will be prompted to turn to purchasing components worldwide, which is more cost-efficient and in turn conducive to the industry's competitiveness on the global market. Long also noted that China will undoubtedly carry out all its promises made in the WTO negotiations amidst worries from United States over China's credibility. All the promises will become a reality because they also comply with China's own interests, he said. |
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