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| Mr. Chen Jian's portfolio is consisted of the Department of Asian Affairs, Department of Foreign Economic Cooperation, the China International Contractors Association, the Association of International Engineering Consultants, and China International Economic Cooperation Society. He also assists Vice Minister of Commerce Ma Xiuhong in her responsibilities with respect to the Investment Promotion Agency. |
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Add:No.2 Dong Chang'an Avenue,Beijing China (100731)
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| Improve the Industrial Competitiveness, Meet the Challenge of Economic Globalization |
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| 2005-09-14 11:34 MOFCOM |
Speech of Assistant Minister of Commerce Chen Jian at the 2nd Seminar On International Competitiveness of China's Industries
Ladies, Gentlemen, Guests and Delegates:
Good Afternoon!
Xiamen, a beautiful city of China's coastal area, received distinguished guests. On the occasion of the 9th China International Fair for Trade and Investment, I would like, on behalf of the Ministry of Commerce, to extend my sincere thanks and warm welcome to the delegates participating the 2nd Seminar on International Competitiveness of China's Industries. Today, scholars and entrepreneurs home and abroad gathered together here to discuss major issues of how to upgrade the quality and index of competitiveness for domestic industries, how to apply reasonably WTO rules to settle down trade dispute, respond to trade barriers and reduce trade frictions and how to take part in international economic and technological cooperation and competitiveness in a bigger scale, broader field and at a higher level during the latter half of the transitional period after the entry into WTO so as to contribute to the improvement of the international competitiveness of China's industries.
Within over 3 years after the access to WTO, China completely utilized the good opportunity of a new round of international industrial transfer to expedite the adjustment of domestic industrial structure and take advantage of the comparative superiority of China's industries to endeavor to enhance the comprehensive competitiveness of industries. Location of agriculture and structure of agricultural products were further optimized, agricultural structure sped up the development with higher quality and efficiency and the industrial structure adjustment made an obvious achievement, the traditional competitive industries and new industries like automobile industry, electronic technology information and biology engineering were further developed with a high speed. Structure of service industry was optimized and the development was expedited.
In the first half year of 2005, development of China's national economy was in accordance with the expectation of macro control and turned a favorable momentum. The year-on-year growth in GDP was 9.5% and in fixed assets investment was 25.4%. Total imports and exports amounted to US$645 billion, up by 23.2%. In 2004, China's foreign trade ranked No. 3 worldwide, symbolizing that it was becoming a new and big trading country, but not a strong one and the foreign trade was still in an extensive growth mode. Commodities with low added value still accounted for much of exports, which not only enlarge the pressure on domestic resources and environment but also exacerbated trade frictions with relative countries.
A batch of competitive enterprises in China like Sinopec, Hai’er went global in the tide of economic globalization and set up networks worldwide of production and sales, and had certain capacities to participate international cooperation and competitiveness. 15 Chinese domestic enterprises were listed in World’s Top 500 in 2005 Fortune. But according to IMD, China slid down from No. 24 to No. 31 in the list of international competitiveness of main countries and regions in 2005. Especially, in the latter half of the transitional period, China’s industries faced with complex international environment and new and severe challenges. There are still outstanding problems in industrial development, which are turning to be potential threat against economic security, and major ones were the following:
1, Domestic industries were confronted with greater challenges and pressure. When entering into the latter half of the transitional period, the Chinese government would gradually release or cancel some original controlling measures, part of sensitive industries would face intense competitiveness of imported commodities and service. Underlying issues in China’s economic structure would be clear and the potential risk in economic development and industrial security would increase.
2, Trade frictions occurred frequently and external environment turned to be tense. In the coming period, the status of trade frictions would be more complicated.
3, China was suffering with the huge pressure of further opening up the market in a new round of WTO negotiation.
The challenges faced by China’s industrial development were fundamentally directly related with the weak international competitiveness. Therefore, the essential way for China’s industries to maintain industrial security in current international economic and trade environment was to improve the international competitiveness so as to guarantee a healthy development in the international environment with increasing intense competitiveness.
Competitiveness investigation and appraisal are important parts of macro control for a country from governments’ experiences. The Ministry of Commerce took the guidance of industries to improve international competitiveness as an important task and launched a project to investigate and appraise international competitiveness of industries. Meanwhile, we actively started influential appraisal of international multi-lateral and regional trade and economic agreements on major industries, and studied deeply the appraisal theories and methods of countries in the world.
China released the primary study result of appraisal of China’s automobile competitiveness at the initial seminar on international competitiveness of China’s industries, which was of much positive significance to enhance the international competitiveness of automobile industry and improve the export management policies and healthy development in the industry. Today China will issue the study result of competitiveness appraisal of phosphate fertilizer and electronic technology information.
Ladies and Gentlemen:
China’s industries faced with both huge challenges and opportunities in the latter half of the transitional period after the entry to WTO from the competitiveness investigation and appraisal on automobiles, electronic technology information and phosphate fertilizer. Opportunities were:
1, economic globalization was beneficial to take part in the division of labor and introduce big transnational companies, to form an international environment and unify the market.
2, China-ASEAN,CEPA and other regional trade liberalization benefited to promote optimization of resources allocation and investment environment.
3, high-speed development of global IT industry lowered the transaction cost and provided convenience for the realization of great-leap-forward development and new industry.
Experiences in the 3 years after the access to WTO indicated the core of work in the latter half of the transitional period that to improve industrial competitiveness, industries and leading enterprises for special were main body to improve the competitiveness. The following 4 points should be done well by industries and enterprises in order to improve international competitiveness:
1, to implement outlook of scientific development, expedite the transfer of growth mode and realize sustainable development.
2, to seize strategic opportunities to “Go Global” and “Bring in”.
3, to enhance the capacities of self-innovation in technology in China’s industries, foster proprietary IPR and brands.
4, to maintain industrial security according to realities.
Ladies and gentlemen:
Under the background of economic globalization, faced with the situation entering into the latter half of the transitional period after access to WTO, departments, industries and major enterprises should completely utilize international usual practice to develop and protect themselves and make common efforts to improve the international competitiveness of China’s industries.
Wish the Seminar a great success. Thanks!
(Source: Network Center of MOFCOM) |
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