Chinese firms to 'go global,' trade minister says

Asian Economic News, June 19, 2000

BEIJING, June 16 Kyodo

China's trade minister said Friday the government would encourage the country's companies to "go global" and become multinational corporations, bringing to an end two decades of policies that almost exclusively focused on attracting foreign investment to China.

Speaking before business and government leaders in Beijing for the "21st Century Forum," Shi Guangsheng, minister for foreign trade and economic cooperation, said China would now focus on a dual strategy of attracting foreign investment and pushing Chinese enterprises to do business abroad.

A more prominent global role for China's burgeoning private sector will be met with an equally assertive government policy, he said. Once China enters the World Trade Organization (WTO), Shi promised it would play a leading role in pushing for reform of the trading rules to better reflect the interests of developing nations.

"China is willing to join hands with other WTO members to actively promote the establishment of a fair, reasonable, new international economic order in order to let more countries, including the vast number of developing ones, share the opportunities and benefits brought about by the multilateral trading system," he said.

The WTO's Millennium Round was originally set to begin last November at a trade summit in Seattle in the United States.

But serious disagreements on agricultural subsides and global labor standards stalled the talks.

The WTO still hopes to start a new round negotiations later this year, but Shi left no doubt China believes issues not directly to trade, including labor issues, should be excluded.

Shi, a key player in the success of the recently concluded trade pacts with the United States and the European Union, said, "It won't be long before China becomes a full member of the WTO," adding negotiations with the five countries yet to ink a trade agreement with Beijing -- Costa Rica, Ecuador, Guatemala, Mexico, and Switzerland -- "will be put to an end shortly."

Moribund and uncompetitive state enterprises, a still-evolving legal system, and an underdeveloped economy would certainly present "challenges" upon China's accession to the WTO, but "comprehensive national power" would allow it to overcome a tough adjustment period, he said.

Shi predicted sweeping reforms in banking, insurance, services, securities, and other fields will "bring our own advantages into play."

"I believe the Chinese market will become one of the most energetic markets of vitality in the world," he said.