China is expected to maintain a high level of foreign direct
investment of US$45 billion to US$50 billion this year, pledged Shi
Guangsheng, minister of
Foreign Trade
and Economic Cooperation.
Foreign direct investment to China reached US$46.8 billion last
year, hitting an all time high.
However, he said this year will be an extremely difficult year for
the growth of foreign trade, as many uncertainties remain despite
signals beginning to bud in major developed nations for a possible
global economic recovery.
Shi made these remarks yesterday in Beijing on the sidelines of the
ongoing Fifth Session of the Ninth National People's Congress.
He
warned that China will retain its rights for further action if the
United States neglects China's solemn position and continues its
trade protectionism policy against Chinese steel manufacturers.
"We think this is an action of trade protectionism which violates
WTO rules," said Shi, referring
to the recent announcement made by US President George W. Bush to
impose an additional tariff on steel imports from other
countries.
Shi said sanctions against steel exporters from other countries
will not only undermine steel trade between these countries and the
United States but also would bring no solution to the struggling US
steel sector.
"The current difficulties in the US steel sector is not a result of
increasing steel imports but rather a restructuring of the domestic
steel sector in the US," said Shi.
More seriously, Shi warned that the move could increase heavy
burdens on US consumers and reduce the competitive power of US-made
products.
"We will follow closely the latest developments in this issue, and
China retains its right to take further action, including launching
a formal complaint with the WTO," Shi said.
China is one of the biggest victims of global anti-dumping
investigations, with 485 anti-dumping cases brought against Chinese
enterprises in recent years.
"Chinese companies should nurture a strong sense of
self-protection," Shi added.
China is to remain one of the most attractive destinations for
foreign direct investment this year, despite the country's foreign
trade experiencing one of the most tough periods in recent
years.
However, confidence is high, as Shi claims investors see China as
the safest place for foreign investment, and a market with large
growth potential, a sound legal framework, established
infrastructure facilities and a better cultural environment.
Shi reiterated that China will play an active and constructive role
in launching a new round of WTO talks.
The Doha Ministerial Meeting for Trade Ministers reached an
agreement in November to launch the new round.
Developed and developing nations will participate in the talks on
an equal footing and enjoy equal rights, and the new round of
negotiations should be beneficial to the growth of global trade and
economic co-operations, and the launch of a fair, new international
trade order, Shi said.
"The result should take into consideration balancing the rights and
obligations between developing and developed nations, especially
paying attention to the concerns of extremely poor nations," Shi
said.
To
foster closer trade ties between the mainland, the
Hong Kong Special Administrative Region (HKSAR) and Taiwan,
Shi said talks to establish a type of free trade zone between the
mainland and the Hong Kong SAR - an initiative promoted by its
Chief Executive Tung Chee-hwa late last year - are currently
running smoothly between the two sides on two main topics - trade
and investment facilitation, and tariff and non-tariff measures
concerning trading goods.
"But there is no final timetable yet," Shi said.
"And a consensus was built up that the easier issues will be
tackled before the hard ones, and we will carry out the agreements
once they are reached.
"The consecutive accession to the WTO has brought new opportunities
to boost trade ties following the Chinese mainland and the separate
tariff territory of Chinese Taipei's WTO accession."
"(However) the most pressing need is to realize direct and mutual
"three-links" across the Straits under the one-China principle,
without which we could not talk about the development of free trade
areas."
(China
Daily March 13, 2002)