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| Go Hucheng：Speech at the National Working Conference on Enhancing the Competitiveness of Key Industries and Preserving Industry Safety |
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| 2004-12-02 18:13 |
The National Working Conference on Enhancing Competitiveness of Key Industries and Preserving Industry Safety was held on February 25 in Beijing. Wu Yi, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, made important instructions at the conference emphasizing that improvement of the international competitiveness of Chinese industries was the main part of the efforts in responding to China’s WTO membership and earnestly safeguarding industry safety, and the basic route to the healthy development of China’s industries in stronger international competition.
Vice Minister of Commerce Gao Hucheng pointed out in his speech that vigorous efforts should be made to meet the challenges brought about by China's accession to the WTO, raise the competitiveness of the industries, apply trade remedies in line with relevant laws and regulations and to earnestly safeguard industry safety.
Gao Hucheng made an all-sided analysis of the situation Chinese industries confronted with in the recent 2 years after China’s WTO accession. China’s WTO membership provided Chinese companies with opportunities to expand foreign trade and economic cooperation, created favorable conditions for Chinese industries to quicken up their restructuring process and bring into play their comparative advantages, enabled China to exert its rights as a WTO member, and improved external environment of Chinese industries. But in the mean time, Chinese industries were also faced with fiercer competition, rise of trade protectionism internationally, problems and challenges in the process of fulfilling WTO obligations, further liberalizing its market and regulating the domestic market order.
Gao Hucheng pointed out that upgrading the international competitiveness of Chinese industries was an essential strategy to safeguard industry safety. At present, the Chinese economy had evolved to an important stage full of opportunities. It was a strategic initiative under the new development concept to improve the competitiveness of Chinese industries in order to safeguard industry safety. It had a significant bearing on whether we could properly deal with the relationship between speed and structure, quality and efficiency of foreign trade development so as to achieve comprehensive, coordinated and sustainable development; It had also a great impact on whether we could successfully cope with the complex circumstances in late transition period after China’s WTO accession, and find fundamental solutions to address trade frictions and trade barriers. With the acceleration of economic globalization and technological advancement, many countries adopted more varieties of measures to protect their domestic industry, which went beyond antidumping, countervailing, safeguard measures and other trade remedies. Especially, some developed countries had intensified their protection of the domestic markets by resorting to IPRs, technical standard and other non-tariff barriers. Confronted with more and more trade barriers, China’s domestic industry must raise the grade and technical content of their products, develop products with its own IPRs and brands, and ultimately improve the overall competitiveness. Economic globalization would result in cross-border competition. As the main player in market competition, all companies had to take part in global competition directly or indirectly. Even though trade remedies such as antidumping, countervailing and safeguard measures were effective ways to protect industry safety, they were limited to such means as providing injured industries with restructuring time and a leveled playing ground for competition. In the long run, industries with no competitive edge could not survive.
Gao Hucheng underlined the role of trade associations in safeguarding industry safety, as they served as a bridge between the government and the business community. They should reinforce self-discipline, protect the overall and long-term interests of the industries they represented, maintain an environment encouraging fair competition, and promote the orderly development of their industries. These intermediary agencies should coordinate and assist companies to respond to trade frictions by applying trade remedies. They should be more mentally prepared and improve their mechanisms to serve their members better.
Mr. Gao required Chinese industries to strengthen the sense of law and self-protection, so that they could apply legal means such as antidumping to protect their legitimate rights. Domestic industries currently under the protection of trade remedies should make full use of the buffer space to expedite the restructuring efforts in order to grow stronger.
The Ministry of Commerce should consolidate the connection with industries, actively guide and coordinate the industries, and create a sound environment for China’s domestic industry to upgrade its competitiveness internationally and safeguard industry safety, Vice Minister Gao Hucheng continued. Furthermore he expected trade associations to do all detailed work well, keep abreast of the times to make greater contributions to China’s economic development with uplifted spirit and strong sense of responsibility and historical obligation.
Attending the Conference were representatives of nationwide major trade associations, chambers of commerce, some key companies, institutes, universities, intermediary agencies and all relevant departments of the State Council.
(Information by Network Center of MOFCOM)
(News source: English Website of Ministry of Commerce)
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