CHINA'S move towards the establishment of a socialist market economy is irreversible. In the past few years, the country has been working hard towards restoration of its status in the General Agreement on Tariffs and Trade (GATT). For example, the unification of the yuan exchange rates on January 1 is a key element in the effort to create a favourable environment for re-entry to GATT.
What other major issues have to be addressed? And what further improvement could be made in economic reform and opening to the outside world? First, foreign trade. The existing import quota, import licence system cannot meet the requirements of GATT. But foreign trade system reform is necessary and China is making progress.
Minister of Foreign Trade and Economic Co-operation Wu Yi has promised that the management mechanism of China's foreign trade will be implemented in accordance with the principles of fairness and openness - a system of tender and auction will be adoptedfor distributing import quotas and licences.
The import licence for the majority of commodities will also be abolished very soon.
China will also take substantial steps in the area of import tariffs. In 1992, China abolished import adjustment tax, and twice lowered import tariffs. At the end of last year, China further lowered its import tariffs.
To attract foreign investment, China still needs to speed up reforms and expand the scope of foreign involvement.
According to GATT requirements, domestic and foreign companies should be allowed to compete fairly in all trade-related investment.