| For Shenzhen, entry into WTO windfall and challenges |
| Tuesday,December 12,2006 Posted: 14:04 BJT(0604 GMT) Shenzhen Daily |
BEIJING, Dec. 12 -- As China marked its fifth anniversary of World Trade Organization (WTO) membership on Monday, it was also time for Shenzhen, the country's window to the outside world and a leading export powerhouse, to take stock of the changes. Five years after the WTO entry Dec. 11, 2001, China has emerged as a rising trading power, with foreign trade volume last year surging 178 percent from that of 2001. Shenzhen, home to a legion of exporters, also saw its foreign trade chalking up a whopping 166 percent growth in the same period, with its exports topping the country throughout the past five years. The benefits from the broader overseas markets brought by the WTO membership have trickled down to many sectors of the economy, with the city's GDP more than doubling in the past five years. For ordinary Shenzheners, the changes are obvious. Cars are no longer unaffordable for many families. Foreign banks and retail chains provide much more choice and force their local competitors to improve their service. There are more imported goods at lower prices, while robust exports have created jobs and wealth. The reverberations from the WTO membership have reached beyond the economy. The WTO rules requiring non-discriminatory practices and transparency, which were designed to secure level-playing-field conditions for trade, have also led to the revocation and revision of 24 local laws and regulations, and a more efficient and transparent municipal government. Despite the benefits, WTO membership has also brought challenges to Shenzhen. In the past five years, more than half of the trade conflicts between China and other countries involved Shenzhen companies. High-profile anti-dumping cases included those for Shenzhen's car windshields and color TV sets. The city's exports of garments and other textile products, which exceeded 3 billion U.S. dollars each year over the past several years, also face increasing protectionist measures in the United States, EU and other countries. Zhang Jinsheng, director of the Shenzhen WTO Affairs Center, warned last week that more Shenzhen companies will find themselves embroiled in international trade disputes as China's trade surplus continues to grow amid rising trade protectionism overseas. Failure in a legal battle against a foreign rival could lead to hefty tariffs and shrunken market shares. The risks could be high for many Shenzhen manufacturers that rely heavily on foreign markets. Yet some companies have been reluctant to answer anti-dumping lawsuits because overseas legal procedures usually require too much time and money and the companies have yet to hone their skills in dealing with these challenges. The government has set up dozens of WTO affairs stations in industrial zones in the city in a bid to help manufacturers ready themselves for legal disputes. But, as experts say, the best way forward for Shenzhen manufacturers will lie in a shift to more value-added products. Sweatshops cashing in on exploited labor to turn out cheap goods will find their days numbered. |
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