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3 Eventful Years in the WTO

Since China entered the WTO in December 2001 people have witnessed great changes in clothing, food, accommodation and transportation.

Auto import tariffs have been slashed three times in three years from 70-80 to 34.2-37.6 percent. Import quotas have increased by 15 percent annually since 2000, and by January 1 all auto import restrictions will be lifted.

This has resulted in more choice and better prices, whilst better service and financing has also been introduced.
 
One of most affected sectors has been the mobile telecom industry, with competition resulting in free received calls and prices reduced by up to a third. Some special offers even give away free phones for sign-ups to mobile accounts. Meanwhile, new technologies like high-resolution camera phones have also become available.

3G may offer even more opportunities; insiders believe that, as they involve a wide range of value added business and demand new technology, they will encourage more joint ventures once licenses are issued.

Civil aviation has also seen a lot of change, including the regrouping of airlines, foreign investment and the appearance of private airlines.

Tourist destinations are no longer limited to Singapore, Malaysia and Thailand. European and South African tours are already increasing, and Brazil, Argentina and Chile have also been approved as destinations.

More foreign airlines mean more competition, and many airlines have had to improve their services to keep old clients and lure new passengers. The Civil Aviation Administration of China estimates that passenger volume will exceed 115 million in 2004, with double-digit growth expected to 2010.

China's retailing sector will end its three-year transitional period on December 11 and will then be fully open to foreign investment.

However, market expansion in some cities is ahead of schedule. The majority of urban residents can already shop in world famous retailers like Carrefour and Wal-Mart.

Some Chinese retailers have been concerned by this, but Long Yongtu, former chief representative of China's WTO negotiations and now secretary-general of Boao Forum for Asia, believes that the advantages outweigh the disadvantages. Foreign retail giants have had a profound impact on management principles, operation methods and management styles.

Pharmacies also now offer greater choice for consumers. Imported and joint venture-produced medicines now account for one third of the market, whilst in large and medium-sized cities the figure is closer to a half. Prices of both domestic and imported medicines have been significantly reduced.

Stricter rules defining prescription and over the counter medicines have also helped control safety standards.

All of these changes have had lofty origins - China's fulfillment of its commitments to the WTO - but have resulted in great changes in the everyday lives of ordinary people.

(China.org.cn by Guo Xiaohong and Tang Fuchun December 10, 2004)

Nation Progressing Well with WTO Commitments
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