Some people have argued that China's entry to the WTO would be bad for the country, because mainland companies could not compete with foreign enterprises, therefore many people would be put out of work. I agree that most of the country's state-owned enterprises are not competitive. For instance, it costs more to make a car in China than in the West and yet the PRC-made vehicle has a much shorter lifespan. However, I believe that in the long term, China can benefit from entry into the WTO. While market reforms have continued, the state-owned enterprises have proved to be an obstacle to economic growth. Most of them are losing money because their executives will not take responsibility for what is happening in their factories. They do not care whether the factory makes a profit or loses money. They abuse their positions of power and corruption is rife. The problems with the state-owned industries could be solved with a free market. Once there was no longer a monopoly, everything would become more transparent. Officials would become more accountable. With keen competition, only the best could survive. This could help the state-owned enterprises enhance their management skills and make advances in technology. In one province, better production practices have improved the quality of cotton which used to contain many impurities. Now that it is being processed in a cleaner, more efficient plant, the cotton is of high quality and therefore commands a higher price. In a free market, banks will not give loans to high-risk projects which are likely to bring low returns. This approach can ensure a healthier economic climate. Entry to the WTO will accelerate the pace of economic reforms. Such reforms may be a bitter pill for some to swallow, but we have no choice. What about Hong Kong? Many people are worried that the SAR will lose its role as a medium of trade to the mainland. That may be so, but there will be new opportunities. However, we have to become competitive enough to grasp these openings. Our competitors are making progress. We must match them and provide quality services. We have to raise standards to meet the new challenges. I hope the people of Hong Kong are willing to do this. MATTHEW LEUNG Fanling
