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China's pattern of all-round opening up essentially formed |
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17:09, September 03, 2007 |
Following the 16th National Congress of the Communist Party of China (CPC) in 2002, China is essentially completing its pattern for all-round opening up by seizing the opportunity of WTO accession, actively participating in economic globalization, and boosting its level of reform and opening up. By opening up, the nation has successfully boosted its economy, accelerated industrial updates, expanded employment, increased revenue, and provided a guarantee to the development of an overall well-off and harmonious society.
China benefits significantly from economic globalization
In the past five years, an official from the Ministry of Commerce told the reporter that China has grasped the opportunity of international industrial transfer and has been an active member of the global labor division. Total import/export volume reached 1.76 trillion US dollars, 2.8 times of 2002. Exports of high-tech products doubled and that of information products rose from 142.1 billion dollars in 2003 to 364 billion dollars last year. Nearly one fourth of the increased export volume from the first half of this year was due to the added-value of products. The processing trade, with materials and equipment purchased from and finished products sold to international markets, not only expanded in scale, but also created more than 30 million jobs.
In regards to the service outsourcing sector, the Ministry of Commerce and other related departments are implementing a project that aims to establish ten service outsourcing bases to attract projects of 100 famed transnational companies; and foster 1,000 large- and medium-sized enterprises to double service outsourcing exports from 2005, by 2010.
"Bringing in and going out" to optimize global distribution of resources
In terms of "bringing in", China has gradually shifted from using foreign capital alone to a comprehensive utilization of foreign factors. Technology imports stood at 22 billion dollars in 2006, averaging an annual growth of 20 percent in four years. Introduced technology boosted domestic growth. For example, it accelerated the modernization of high-speed railways.
The nation encouraged foreign investment in hi-tech industries; and enticed transnational companies to set up R&D centers and regional headquarters in China. Both campaigns intensified the spillover effect of "bringing in". By now China is home to nearly 1,000 such R&D centers and 300 regional headquarters, double of those three years ago. By guiding foreign-funded companies in extending their industrial chains, processing trade dominated by foreign capital registered an added value of 59 percent domestically, 11 percentage points higher than in 2004. The entry of international retailing giants drove up commerce modernization, with noticeably boosted circulation and service. Meanwhile China also enhanced the examination of foreign purchase of domestic strategic industries; and imposed tight restrictions on projects that are redundant, cause heavy pollution, and consume excessive amounts of energy.
By "going out", Chinese companies have continually enhanced their capabilities in transnational operations. So far China has more than 30,000 enterprises engaged in cross-border business, with investments covering 160 countries and regions. Transnational purchases and mergers make up 40 percent of outbound investment; while the number of large-scale projects has increased noticeably. Foreign contract projects, including the Algerian highway (6.3 billion dollars) and the Nigerian railway (8.3 billion dollars), are becoming much larger in scale. China also opened a new form of "going out"—overseas trade cooperation areas—and those in Pakistan and Zambia have yielded initial results.
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