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Premier Calls for Wider Opening After WTO Entry
2004/06/16

BEIJING, March 5 (Xinhuanet) -- Premier Zhu Rongji has called for
adapting to the new situation following China's entry into the
World Trade Organization (WTO) and opening wider to the outside
world.
  He made the call while delivering the Report on the Work of the
Government at Tuesday's opening of the annual session of the
National People's Congress (NPC), the China's top legislature.
  Zhu said that China's entry into the WTO indicates that its
opening up has entered a new stage. "We need to actively
participate in international economic cooperation and competition
on a broader scale and in greater depth and complete our tasks for
the first year of China's membership in the WTO."
  According to the premier, in recent years and especially over
the past few months, China has done a great deal of work to meet
requirements for its entry into the WTO.
  Review of relevant state laws and statutes has been completed
by and large, and a number of laws and regulations have been
repealed, revised and formulated.
  Beginning January 1, 2002, China's general tariff level has
dropped from 15.3 percent to 12 percent, and the reduction
involved more than 5,300 taxable items.
  This year China should concentrate on increasing its
international competitiveness and fulfilling the following tasks
on the basis of what has been achieved, according to Zhu.
  First, following the principles of the uniformity of law,
nondiscrimination, and openness and transparency, China quickly
improve the system of foreign-related economic laws and statutes
so that they are suitable to domestic conditions and the WTO rules
and able to guarantee fair and efficient law enforcement.    
  Second, according to the commitments in its entry into the WTO,
China should gradually expand the spheres of activity open to
foreign businesses. In addition, it should promptly formulate and
revise market access standards for quality, sanitation, epidemic
prevention, environmental protection and safety.
  Third, China should study, master and fully exercise all the
rights that the country enjoys as a member of the WTO, and
actively promote and participate in regional economic cooperation.
  Fourth, China should study and publicize information about the
WTO and its rules, and provide training to public servants,
especially leading cadres at and above county and division level
and to managerial staff in large and medium-sized enterprises by
stages and in groups.
  China should bring forth, through training, a contingent of
people who are well acquainted with the WTO rules and
international economic cooperation and trade.
  The premier said that foreign trade work has to be done
conscientiously. China should continue implementing the strategy
of market diversification to increase this year's exports.
  He called for efforts to retain existing markets for China's
exports and open new ones. China will adjust and optimize the mix
of export commodities, improve their quality and raise their added
value.
  The policy measures for encouraging exports must be fully
carried out, he said, noting that key enterprises that generate
large sums of foreign exchange through export and enjoy a good
reputation should be ensured of tax refunds in full and on time.
  Zhu said that China will promptly reform and improve the system
of export tax refunds. Tax exemption, reduction and refunding
measures will be applied to those commodities which producers
manufacture and export on their own or entrust foreign trade
businesses to serve as agents for exporting, he said.
  China will expand export credit insurance and provide more
support for export. Reform of the customs service will be deepened
to further facilitate customs clearance and to improve customs
supervision.  
  China will also further reform and reorganize state-owned
foreign trade businesses and diversify foreign trade entities and
export channels.
  In continuing implementing the "go global" strategy, China will
encourage and help eligible enterprises under various forms of
ownership to set up factories or undertake contracted projects
outside China, particularly in neighboring countries, in order to
increase the export of technology, equipment, materials and labor,
the premier said.
  China will import advanced technologies, key equipment, and raw
and semi-finished materials that are in short supply in the
country, and gradually diversify its import markets for strategic
supplies.
  He said that China will continue to utilize foreign funds and
optimize the mix of foreign investment, with focus on bringing in
advanced technology, modern managerial expertise and qualified
specialists.
  China will encourage and guide foreign businesses to invest in
modern agriculture, industries using high and new technologies,
construction of infrastructure facilities, and development of the
western region and to participate in the restructuring and
reorganization of state-owned enterprises, according to Zhu.
  He called for encouraging foreign businesses, especially
transnational corporations, to set up research and development
centers, production bases and regional headquarters in China.
  To promote the development of China's service industries, the
country should attract large reputable foreign enterprises and
intermediary agencies engaged in commerce and trade, tourism,
accounting and auditing.
  China should also create conditions for attracting investment
by small and medium-sized overseas enterprises.
  He pledged to continue improving the investment environment and
the legal system; do everything in accordance with the law; render
better services to investors; improve efficiency, and standardize
the work related to attracting foreign businesses and investment.





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