China Adjusts Trade Policies to Meet WTO EntryChina's lawmakers are busy checking the country's trade laws, regulations and policies to see if they conform to the World Trade Organization (WTO) rules.Chinese Trade Minister Shi Guangsheng said all laws, regulations and policies concerning foreign trade and investment will be reviewed for possible revision and even repeal. The process will go through Chinese legislative procedures, Shi said in an interview with China Daily. Revision drafts of three laws on foreign-invested joint, co-operative and wholly-owned ventures, which have been a cornerstone for the opening practice, have been submitted to the State Council. Economists pointed out that entry into the WTO, which Shi said is "not far away,'' requires China to behave in line with free trade rules. Bilateral dialogues and multilateral contacts on the country's WTO entry have moved into the final phase, said the minister. Foreign businessmen's complaints about the lack of transparency and consistency in the legal system are adding pressure for checking foreign trade and investment laws. China is required to re-evaluate its foreign business-oriented laws and regulations to conform to promises it has made to WTO member nations. Some of China's existing laws, regulations and policies are products of ideologies of rigid central planning, or domestic-oriented social, economic and juridical regimes. China has approached reform in stages from the beginning. Old ideologies have betrayed themselves in the laws and regulations. Drafts of new laws, such as the anti-dumping and anti-subsidy codes, are ready for submission, Shi said. The country is also drafting laws to make its foreign trade and investment-related legal framework complete, Shi said. Reports say lowering trade barriers will end the licensing system on foreign trade in three years. Transparency of laws and regulations, an improved business environment, and a system to timely inform investors of policy changes are believed to make China's market more attractive. Senior officials from the State Administration of Machinery Industry, said the country's auto industry policy will be revised to relax certain limits on foreign investment and trade. Similar changes are expected to be announced in other industrial sectors. Shi said all industries and sectors in the country are examining possible measures to meet challenges and not miss opportunities brought by entry of the WTO. Programmes have been launched to inform industry leaders about WTO policies and train professionals who should know WTO rules, Shi said. He stressed the government's macro management and enterprises' ability to compete need to improve. Once becoming a WTO member, the trade minister said, China will open its market wider, not only for goods but also for services, such as the sectors of finance, insurance, telecommunications, commerce, foreign trade, health care, education, tourism. Chinese private enterprises and foreign companies that have been locked out for decades will enter the market, analysts said. Shi briefed China Daily about the country's foreign trade. With its competitive edge sharpened in preparation for taking part in global free trade soon, he said, China will succeed in creating a trade surplus. For this year, he said, China's trade surplus will be in moderate size. He emphasized China is pursuing a trade balance policy. A wide range of efforts to export to increase imports are being encouraged to ensure the national economy steams along at its current pace. The gross domestic product is expected to grow by 8 per cent this year. Economists pointed out that China needs a trade surplus as more foreign debts are coming due. Shi estimates imports this year will increase by over 10 per cent and exports are likely to "see double-digit growth.'' The government's latest statistics show exports and imports between January and May soared 37 per cent and 35 per cent, to US$92.3 billion and US$81.8 billion respectively. That's in sharp contrast to moderate growth last year, 6 per cent on exports and 18 per cent on imports. Trade surplus dropped by 33 per cent to US$33 billion from US$44 billion in 1998. Economists predict the country is likely to trade bilaterally more than US$400 billion worth of goods and services, a growth higher than 10 per cent, or the Ninth Five-Year Plan (1996-2000) target. However, Shi warned the growth in exports would slow down during the latter half of the year. With guarded optimism, he pointed out that the high growth chalked up so far this year was registered against last year's slack situation, when exports had not rebounded as its trade partners had not climbed out of the Asian economic crisis. Shi described foreign trade so far this year as growing at moderate rates, shoring up national economic growth. Shi said the situation of foreign investment is improving. Between January and May, China absorbed US$12.7 billion foreign funds, an 8 per cent drop from the same period last year. Contract foreign investment in the year's first five months was US$18.2 billion, a 25.6 per cent rise. Shi predicted growth in contract foreign investment will pick up this year while actual use may remain at last year's level. In 1999, US$40.4 billion of foreign direct investment actually came, 12.8 per cent less than in 1998. Contract volume was US$52 billion, down by 21 per cent. The slumps were attributed to lingering negative effects of the Asian financial crisis. E-business The trade minister stressed China attaches great significance to e-commerce, a new challenge to the world. The Ministry of Foreign Trade and Economic Co-operation (MOFTEC) has connected its website with those run by the General Administration of Customs, leading banks, the State Administration of Taxation and major domestic enterprises. Chinese and foreign companies can conduct business on the MOFTEC website, he said. |
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