Restructuring Planned for Industry as WTO Accession ApproachesThe Chinese government announced Monday the goals, tasks and policies for economic restructuring and scientific innovation for the next five years, ahead of its accession to the World Trade Organization (WTO), due before the end of the year.The State Development Planning Commission issued a special plan for the key areas of accession to the WTO and improvement of international computability under the 10th Five Year Plan (2001- 2005). The special programs put forward the orientation, priorities and major policies for the reform and restructuring of the agricultural and industrial sectors and part of the service industries. The government has drafted special plans for a dozen key areas, including accession to the WTO, transportation, energy, environmental protection, science and technology, information technology, education, high-tech industries, population, development of the western regions of China, water conservancy and urbanization. The WTO program analyses the impact of WTO accession on China. It points out that China will face two serious challenges: One is to change the way that the government acts; the other is the impact of equal market access on Chinese enterprises. According to the WTO rules and China's commitments under the WTO system, the country has to overhaul government policies, regulations, and the administrative and macro-economic control systems. On the other hand, market access, which centers around tariff cuts, elimination of non-tariff barriers and opening up the service sector, will affect a number of Chinese industries and enterprises. This will give rise to some macro-economic problems, according to the special plan. To resolve these problems, the Chinese government is planning to develop an administrative system that will be in line with both market rules and WTO regulations in the next five years. At the same time, China will greatly improve the international competitiveness of its industries and enterprises, establish an equal market access system and develop a macro-economic control system that is effective and in conformity with international practice. According to the special plan, the government will accelerate the readjustment of domestic laws and regulations, conduct of administration according to law, reduction of administrative examination and approval, and overhaul of the financing and investment mechanism. Meanwhile, the Chinese government will put an end to industrial monopoly and local protectionism, fulfill its commitments under the WTO system, open China wider to the outside world, accelerate the reform of taxation, promote innovation, encourage the advance of science and technology, and create new jobs. |
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