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China to Become Important Player in 21st Century: Lee Kuan Yew
China has taken a major step to plug its economy into the global grid, which will make it one of the most important players in the global exchange of goods, services, capital, talent and ideas in the 21st century, Singaporean Senior Minister Lee Kuan Yew said in Beijng Wednesday.
Addressing the 21st Century Forum -- Conference 2000, which opened here this morning. Lee said that since 1978 when China initiated the reform and opening up drive, "the economy of China has changed dramatically."
China's foreign trade, then about 12 percent, has trebled to 36 percent of China's gross domestic product (GDP), and is still growing.
"When China decided to join the World Trade Organization (WTO) and reached agreement with the United States in November 1999, China signaled to the world that it was taking a major step to plug its economy into the global grid -- although this system is at present still dominated by America, Western Europe and Japan," Lee said.
The senior minister pointed out that the decision will have " profound economic and geo-political implications for China and the world".
Chinese enterprises will learn from, work with and compete against the advanced nations. Global competition will increase the efficiency and productivity of domestic enterprise.
Lee noted that human talent is at present the most valuable resource for creating wealth in the knowledge economy. China has the largest pool of talent, but its trained talent is a fraction of its total potential.
Currently, a large number of China's top graduates leave China. However, many of these graduates will return in the next 10-30 years, to bring back their profit-making skills in technology, management and marketing.
They will eventually help the country catch up with the U.S., Japan and European Union, Lee said.
On the negative impacts of the globalization, the senior minister said that globalization has made China more vulnerable to volatile capital flows.
However, "this can be minimized by restructuring and strengthening its financial system before opening up its capital accounts," Lee said.
He also suggested that China take more active measures in Internet, capital markets and education so that the country will be fully prepared for the future competition.
The three-day conference, whose theme is "economic globalization -- Asia and China," is sponsored by the National Committee of the Chinese People's Political Consultative Conference (CPPCC).
Over 500 participants, including statesmen and celebrities from around 20 countries, attended the conference.
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