In accordance to the tariff concession promise made when entering the WTO, China will further lower the tariff rate for imported vehicles and auto parts. Among them, the import custom duty rates for sedan, cross-country vehicle as well as minibus have dropped from previously 28 percent to 25 percent. The rate for auto parts such as body, chassis as well as engines of medium-and-low emission vehicles have fallen from somewhere between 13.8 -16.4 percent to 10 percent. The current tariff reduction will be the last time for China to lower vehicle import custom duty as part of the requirements for joining the WTO. Presently, the transitional period for auto industry since China's accession into the WTO has finally came to an end.

The general level of tariff is a major index with which to judge a country's market openness. Since late 2001 when China joined the WTO to the beginning of 2006, China has drastically lowered tariffs for the past five consecutive years, with the general level declining from 15.3 percent, the level China had maintained prior to accession into the WTO, to 9.9 percent whilst fulfilling almost all requirements set by the WTO to lower tariffs.

The continuous decline of tariff shows China's openness to the outside world and participation into the current of globalization as having a more active and open attitude. Last year, the total volume of China's two-way trade stood at US$ 1.4 trillion, among which the import accounted for some US $ 660.12 billion, 150.42 billion Yuan more than that in 2001.

Meanwhile, China comprehensively implemented the promise made before joining the WTO by revising relevant laws and regulations and gradually opening the market access and lifting the limit on foreign investment in the fields of telecommunication, law, accounting, medical care as well as education, which promoted the opening-up process to a higher level and broader field.

Currently, the foreign investment in actual use has exceeded US$ 620 billion, with over 550,000 foreign enterprises settling here in China. In 2005, China welcomed a total foreign investment of 11.8 billion Yuan in terms of banking, insurance and securities, which had never existed before. With Citibank, American International Assurance (AIA) as well as Wal-Mart establishing offices and stores in more and more cities across the country, home and foreign enterprises have had the opportunity to compete in the same arena. Therefore consumers have access to better products and better service as well as greater convenience and benefits.

Further opening up has also encouraged large numbers of home enterprises to go global. From 2002 to 2005, China has seen a total foreign direct investment of US$ 17.9 billion, a year-on-year increase of 36 percent. So far, over 10,000 Chinese enterprises have established their branches overseas, with some advantageous enterprises developing into multinational corporations which are engaged in research and development, production, sales and services both home and abroad.

Lowering tariff and opening market are not only the promises China has made to the world, but are also a rational choice for China to seize opportunities, actively respond, welcome advantages and avoid disadvantages, march towards the trade powers as well as accelerate economic development. China will not stop at this point, and will continue to carry forward the process of reform and opening-up, creating a new prospect of cooperative partnership and a win-win situation.

By People's Daily Online