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Premier Zhu Rongji on December 9 urged government officials at all levels to become familiar as soon as possible with the World Trade Organization (WTO) rules, and take all necessary measures to address the challenges entailed in the country's WTO membership. The premier said this while meeting with over 90 senior officials from various ministries and regional governments.

Training Session for WTO Rules

The officials are in Beijing for a training session on WTO rules and foreign investment policies, jointly sponsored by the Organization Department of the Central Committee of the Communist Party of China (CPC), the Ministry of Foreign Trade and Economic Cooperation and the State Administration College.

The premier said joining the WTO was a major decision taken by the central government which conforms to the country's fundamental and long-term interests, as it will give a firm push to China's building of a socialist market economy and the process of its economic modernization.

Negative Effects Should not Be Underestimated

However, he warned that the negative effects of WTO membership must not be underestimated, and that an adverse impact on a few industries, enterprises and products will be inevitable.

"Whether the gains are larger than the losses will depend on our work," the premier said.

Preparation for Challenges

Zhu urged governments all levels to make full use of the transitional period allowed by WTO rules to prepare for the coming challenges.

China must also make full use of its rights bestowed to it by the WTO, the premier said. The status of most favorite nation and national treatment which China will gain from all other WTO members will offer a chance for the country to expand its exports and implement its "go-out" strategy, he said.

China must seize the chance to expand its export, optimize the structure of its exports, attract more foreign investment, and encourage its enterprises to internationalize their operations, the premier said.

China shall also speed up the revision and abolishment of laws and regulations contradictory to WTO rules and its own pledges.

It must also strive to sharpen its international competitive edge, by pushing for technological progress and innovations, upgrading of industrial technologies and adjustment of industrial structure, Zhu said.

Reform Working Way

The premier urged governments at all levels, including departments of the State Council, to reform their functions and way of working to cope with post-WTO situation.

While reaffirming the government's readiness to fulfill its pledges to the WTO, the premier also made it clear that China shall use legitimate means under WTO to protect its domestic industry and security of national economy.

China is to become a formal WTO member on December 11.