Entry into WTO, an Important Choice for China to Merge into Global Economy

China's entry into the World Trade Organization is a strategic choice of importance for China to actively participate in the economic globalization. It is a symbol to show fully the lofty vision and firm determination of the Chinese Government in further deepening the reform and opening wider to the outside world and an active stance in its participation in international division of work and cooperation.

To join the WTO and develop the opened-up economy is an internal requirement for the development of Chinese economy. Recent years have witnessed a soaring development of science and technology, free circulation of commodities, frequent in-and-out flow of capitals in the world and so the regional trade and trade between countries have become more and more dependent on one another.

The first half of this year saw China's import and export trades with peripheral countries and regions hit US$ 92.1 billion, accounting for 38 percent of its total volume of foreign trade. In addition to that 45 percent of China's imports, 20 percent of direct investment from overseas investors and 35 percent of contract projects are from the surrounding countries and regions. In the meanwhile China's investment to the peripheral countries and regions comes to 42 percent of its total overseas investment, a rise of 20 percentage points than that in the previous year.

In the current new matrix of international division of work and trends of globalization in world economy, China is though rich in natural resources yet it has a big population, is fragile in economy and relatively short of funds for construction, technicians and management experience. Therefore, to realize a sustainable development it is impossible for China to stay aside from the multilateral trade system of the world.

Only by relying on ourselves in the development of an opened-up economy in following the rules for developing the world economy, making full use of the two resources and two markets both inside and outside China, can we overcome the hindrance incurred from many aspects as of resources, capital, technology and management, thereby obtaining a favorable condition for economic development from the international division of work and cooperation.

However, an important way to merge into the mainstream of the world economy is to join the WTO as quick as possible so that China can win more interests, a portion that China should win from the international division of work. The WTO has so far over 130 members and the trading value between its members has already come up to more than 90 percent of the world trade value.

After China's entry into the WTO it is possible for China to carry on international trade and economic cooperation in the principle of multilateral, steady, and unconditional preferential treatment provided by the WTO member countries and regions, acquiring equal rights as enjoyed by other members. China will therefore be possible to implement an active strategy of "going out of the country", making it to go into international economic affairs in a deeper way and on a larger scale so as to create an international environment ever more favorable for China's modernization construction.

China cannot get any development without the world nor can the world get anywhere by parrying China aside. At the beginning of 1980s, China succeeded one after another in resuming the seats in the IMF and the World Bank and played an important role in stabilizing the international monetary order and in helping those poor countries that were landed heavily in loans. Recent years have seen China swim and sink in a complicated and changeable environment of international economy, and it has succeeded in coping with the Asian economic crisis, realizing faster development in its national economy. And this year has witnessed a slowdown in the growth of international economy but China still sees a good situation in the development of its national economy. The stabilized social environment, extensive market potential and great opportunity for developing business in China will surely offer a vital impetus to the development of the world economy.

To join the WTO will help China to play a more important role in international affairs, especially in the international economic affairs, thus raising China's international status. As a economic big country China will abide by the same rules and regulations of the WTO together with the other 130 member countries and regions.

This is conducive for China to make more extensive cooperation and exchange with the world non-developed, developing and developed countries in the fields of international trade and economy and at the same time it is good for world peace and stability. China's entry into the WTO is also good for maintaining economic benefits of its own and those of the non-developed and developing countries in the multilateral international trade system by participating fully in mapping out the rules for economic competition in the world.

Through an indefatigable endeavor over a dozen years in the past China has eventually succeeded in stepping over the threshold of the WTO, indicating that China has set a step forward into a new phase of opening up to the outside world. China is sure to adhere to its promises by opening further its market, thereby participating in the international economic cooperation and division of work on a broader scale and in a deeper way.

By PD Online Staff Han Rongliang

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