China Bracing for Membership in WTO
By ELAINE KURTENBACH Associated Press Writer
BEIJING (AP) - Close to finally achieving its goal of joining the World Trade Organization, China is engaged in a vigorous debate here over how to cope with the competition and conditions the trade rules-making body will bring.
Top trade officials say they plan an overhaul of foreign trade and investment rules to bring China's hodgepodge laws in line with WTO requirements. At the same time, they have warned that the changes will be gradual to allow the country's long-protected industries to cope with outside competition.
Speaking at a recent conference in Beijing, Trade Minister Shi Guangsheng noted that many laws enacted in the 1970s and 80s as China began its transition from a planned to a market economy are in conflict with international law.
``We will speed up making laws concerning imports and exports, foreign trade agencies, border trade, the processing trade, technology trade, origins of production, labor cooperation, overseas investment, external assistance, e-commerce, anti-dumping and anti-subsidy laws,'' the state-run China Daily's Business Weekly quoted Shi as saying.
Another senior trade ministry official noted that laws governing purchase of equity in Chinese companies, export requirements, foreign exchange controls and restrictions on business activities would have to be adjusted, said the report, published Sunday.
``What's more, the government's project review and decision making processes should be more transparent,'' it quoted Ma Yu, director of the trade ministry's Foreign Investment Department, as saying.
Clearing the biggest hurdle in its 13-year quest to join world trade's top body, Beijing struck a deal with the United States in November. President Clinton launched a drive Monday to line up votes in Congress for granting China permanent normal trading relations with the United States as part of that agreement.
To enter the Geneva-based WTO, China must first reach separate market-access agreements with other major trading partners. The most important one remaining is the European Union.
As part of conditions for WTO entry, China has agreed to lift restrictions on foreign banks, securities and insurance companies. It will also likely be obliged to eliminate or relax rules requiring joint ventures to export most of what they produce as well as controls on distribution and marketing.
Although top Chinese officials have used their entirely state-controlled media to portray the prospect of WTO membership in a positive light, newspapers and magazines are nonetheless carrying a lively debate over its likely impact, both positive and negative.
``The blow will not be light. Te pain is unavoidable,'' said an article in the semi-monthly magazine, Banyuetan (China Comment), part of a series detailing the impact of WTO membership on several vulnerable industries such as agriculture, the auto industry, finance and film.
It noted that increased imports of farm products are certain to put heavy pressure on China's inefficient, backward agricultural sector, hurting some farmers' incomes and forcing still more to join the tens of millions who have already migrated off the land in search of work elsewhere.
While membership in WTO is certain to accelerate reforms in many areas of China's economy, the government is still debating how to best handle the transition.
``Most people recognize that China's entry into WTO will promote world economic development as well as reform and development of China's economy. ... But we need to thoroughly research and discuss our strategy and policies for after WTO,'' the Economic Daily said in an analysis published today.