Machine builders warned WTO brings challenge By Don Gasper
STORY: A LEADING mainland official in charge of the machine-building industry yesterday warned accession to the World Trade Organisation (WTO) would present a severe challenge to the sector. Interviewed by the semi-official China News Agency, State Bureau of the Machine-building Industry Director Wu Xiaohua warned that some industrial branches and products would be hit heavily when the mainland joins the WTO. ``China lacks competitiveness as regards hi-tech products,'' he said. `` In recent years there have been US$30 billion (HK$234 billion) to $40 billion worth of mechanical and electrical products imported per annum, which indicates domestic products are unable to satisfy the needs of consumers.'' At present the tariff on such products is relatively high and some are temporarily excluded by non-tariff barriers. ``Once we join the WTO these tariff barriers will gradually be lowered to a normal level, in accord with the promises made by China in bilateral negotiations with relevant countries,'' Mr Wu said. It would no longer be possible to use various non-tariff barriers which were not in keeping with international practice. ``It is these products which will bear the brunt of the impact of WTO accession,'' he said. The impact on products other than those involving hi-tech should also not be underestimated, he said. The cheapness of medium and low-priced machinery products in terms of inputs of labour and resources had been cancelled out by their low level of production efficiency and their high wastefulness with regards to resources. ``With the structural adjustments made by some industrially-developed countries and the rise of the economies of some developing countries, their comparative advantages in the area of medium and low-priced products is now becoming evident.'' ``In order to extricate itself from its present difficulties, China's machine-building industry must promote technical progress and industrial upgrading, and develop and manufacture hi-tech, high value-added products,'' he said. He explained that because of the mainland's entry to the WTO, these products would no longer be able to receive special protection on the grounds that they were fledgling industries, so their growth would be much more difficult to achieve. ``If China's machine-building industry is to achieve comparative advantages in competition internationally, enterprises must quickly change their ways of thinking to operate according to internationally-prevalent rules. So far the great majority of Chinese enterprises have not yet made this change. This is the greatest deficiency we are facing in our competition with the strong players of the world economy.'' Mr Wu stressed that many opportunities had been created by recent measures to further expand domestic demand, including the growing market for agricultural machinery. Mr Wu said that another opportunity for the industry would be provided by the strategy of opening up China's western regions. Back to Business - China Copyright Hong Kong Standard Newspapers Ltd. All rights reserved. ---------------------------------------------------------------------------- -------------------------------------- Workers hold protests over unpaid wages By a staff reporter STORY: TWO separate protests involving 500 workers, were held over housing compensation and unpaid salaries this week in the northern city of Xi'an, a human rights group reported yesterday. About 300 workers from the Xi'an textile mill staged a protest outside City Hall on Thursday demanding the authorities pay their wages due for several months, said the Hong Kong-based Information Centre of Human Rights and Democratic Movement in China. On Wednesday, 200 workers from a packaging material manufacturing plant held a protest demanding resettlement or compensation following the demolition of their company-owned housing back in 1992, the report said. Citing local residents, the report said such protests had often been seen in the city in recent months. Protests by unpaid workers and pensioners, among many others hard hit by the restructuring of state-owned industries, have cropped up across the country. The Public Security Ministry said that 60,000 protests had occurred nationwide in 1998. And it is estimated that more than 100,000 took place in 1999. Meanwhile, the outlawed China Democracy Party's Sichuan branch has issued a new declaration, urging the communist regime to push for political reform and adopt democratic systems in the country saying it is the only solution to the increasing social ills. Back to Main News - China Copyright Hong Kong Standard Newspapers Ltd. All rights reserved. ------------------------------------------------------ Daniel F. Vukovich Dept. of English; The Unit for Criticism University of Illinois Urbana, IL 61801 ------------------------------------------------------