2012年6月12日 日内瓦

尊敬的主席穆纽兹大使,
尊敬的世贸组织总干事拉米,
尊敬的讨论人施密特大使,
各位大使、各位代表：

　　我很高兴率领中国代表团出席世贸组织中国第四次贸易政策审议会议。首先，请允许我以中国代表团的名义，对主席先生刚才的热情致辞表示感谢！

　　我要感谢此次审议的讨论引导人、尊敬的施密特大使，感谢他同意担任此次审议的讨论人。同时祝贺丹麦队在今年欧洲杯中取得了首场胜利，希望丹麦队能够继续保持这种势头，在杯赛中走得更远。我还要特别感谢埃格林先生带领的秘书处贸易政策审议司的同事们，感谢他们为此次审议会议的顺利召开而做出的所有努力。他们准备的《秘书处报告》包含了近两年来中国经济贸易政策方面的大量事实性材料，为审议顺利进行提供了很好的基础。

　　主席先生，截至昨天，我们收到了来自30个成员约1720个问题。刚刚我们还收到了来自厄瓜多尔的问题，我们将尽快提供答复。由于工作量大，时间紧，中方几十个部门的同事一直在昼夜工作。现在我可以自豪地告诉您和所有成员，这些问题的书面答复已经完成。其中个别问题的答复还在翻译过程中，这已经在答复中标记出来。我们将努力在周四前完成翻译，以便在第二次会议上可以散发。

　　主席先生，自上次审议以来，中国面临的经济贸易环境十分复杂。但是，中国政府以保持经济强劲、可持续、平衡增长为目标，坚持深化改革，扩大开放，着力扩大内需，加快经济结构调整和经济发展方式转变。中国的经济贸易发展保持了良好的态势，与各国各地区在多边、区域和双边的经济贸易联系进一步深化。

　　我下面的发言将主要分为两个部分，第一部分是经济贸易的宏观环境，第二部分是贸易投资的发展情况及有关政策。最后，我将简短地对未来前景进行展望。

　　第一部分，关于宏观环境。

　　1、中国面临的挑战

　　上次审议以来，中国发展的外部环境十分复杂。持续蔓延的欧债危机和一些成员采取的非常规货币政策对中国经济贸易发展都产生了诸多不利影响。

　　外需仍然低迷，特别是欧债危机影响日益明显。欧盟是中国最大的贸易伙伴，中国对欧盟出口2010年第一季度同比增长31%，2011年第一季度同比增长17.2%，但2012年第一季度却同比下降了1.8%。欧盟对华投资2010年第一季度同比增长9.9%，2011年第一季度同比增长26.54%，但2012年第一季度却同比下降了31.2%。

　　人民币汇率持续升值。根据国际清算银行测算，2005年人民币汇率形成机制改革以来，人民币名义有效汇率已经升值21.37%，实际有效汇率升值29.38%。

　　在这种情况下，中国有许多企业，特别是沿海地区外向型的中小企业遭遇订单减少、成本增加、融资困难等问题。

　　在国内，我们在稳定物价上遇到了较大压力。2000年至2009年十年间，中国消费者物价指数平均涨幅仅为1.85%。但是2010年第一季度到2011年第三季度，该指数逐季快速攀升，从2.2%上升到了6.2%。

　　劳动力成本上升趋势明显，人口老龄化压力不断加大。2010年，中国大陆31个省（区、市）中，有30个调整了最低工资标准，月最低工资标准平均增幅为22.8%。2011年，又有25个调整了最低工资标准，平均增幅22%。

　　中国目前老年人口已达1.85亿，是世界上唯一一个老年人口超过1亿的国家，而且还在以每年3%的速度快速增长，预计到2053年将攀升至4.87亿的峰值，也就是在不久之后。中国社会的老龄化水平将由现在的13.3%提升至34.8%。

　　中国政府为控制物价上涨采取了房地产调控等一系列措施，但是这些措施对消费也产生了一定影响。中国的汽车销量在2009年和2010年经历了46%和34%的爆发式增长，2011年回落到了2.5%。中国农村市场消费潜力虽然规模巨大，但启动缓慢。中国在处理好短期的现实问题的同时，必须着力解决经济中长期存在的不平衡、不协调和不可持续的问题。

　　2、中国政府的应对举措和成效

　　面对这样的形势，中国政府积极深化改革，坚持推进开放，着力改善民生，在扩大内需、特别是消费需求方面出台了一系列政策措施。

　　2011年9月，中国开始实施新修订的《个人所得税法》，大幅调降了个人所得税。这是2008年上一次个人所得税减税后的又一次大幅减税，个人所得税纳税人数由约8400万人减少到了约2400万人。
中国社会保障制度的完善在这两年取得了突破性进展。覆盖13亿多城乡居民的社会保障体系框架基本形成，保障水平在保证可持续性的同时也稳步提高。社会保障制度的不断完善长远而言对于扩大内需，特别是消费需求将起到重要的促进作用。

　　在深化改革方面，过去两年，中国政府全面启动了资源税改革、营业税改征增值税的改革试点，有序推进了人民币汇率形成机制改革，促进人民币的跨境使用。截至2012年3月底，中国人民银行已经与17个国家和地区签署了双边本币互换协议。已有83家境外机构可以投资于中国债券市场，包括境外货币当局、国际金融机构、商业银行、保险公司和基金管理公司等。

　　在我们起草《政府声明》之后的短短2个多月时间里，中国政府在许多重要领域又连续迈出了重大改革步伐。

　　央行扩大了外汇市场人民币兑换美元汇率的浮动幅度；交通部、铁道部、银监会、国资委等发布了一系列关于民间资本进入相关行业，或者参与国有企业改制重组的实施意见。就在前几天，6月8日，央行在宣布降息0.25个百分点的同时，决定将金融机构存款利率浮动区间的上限调整为基准利率的1.1倍；将金融机构贷款利率浮动区间的下限调整为基准利率的0.8倍，从而在利率市场化方向上又迈出了重要的一步。

　　在中国政府的努力下，2010年和2011年，中国经济保持了强劲的增长势头。国内生产总值同比分别增长了10.4%和9.2%，而物价指数涨幅在2011年第四季度回落到了4.6%。2012年第一季度，国内生产总值继续实现了8.1%的较为强劲的增长，与此同时，物价涨幅继续回落，下降到了3.8%。

　　经济和社会发展也显示出了更趋平衡的势头。中国的经常项目顺差占国内生产总值的比重出现了持续下降。2007和2011年，中国经常项目顺差与国内生产总值之比分别为10.1%和2.8%，而在2012年第一季度仅为1.2%。中国的城镇化率在2011年超过了50%，实现了社会结构的历史性变化。

　　第二部分，关于贸易投资发展情况和有关政策。

　　1、贸易发展方面

　　主席先生，中国政府坚持出口和进口并重的方针，过去两年，进口增幅明显高于出口增幅，进出口贸易正向更平衡的方向发展。

　　2010年和2011年，中国货物贸易出口总额分别为1.58万亿美元和1.9万亿美元，同比增长31.3%和20.3%；进口总额分别为1.4万亿美元和1.74万亿美元，同比增长38.8%和24.9%。

　　中国货物贸易顺差近年来持续下降。2008年，中国货物贸易顺差达到历史最高点，为2981亿美元；2009年下降到1957亿美元；2010年和2011年，又进一步下降到1815亿美元和1550亿美元。

　　2010年，中国货物贸易顺差占进出口总值的比重为6.1%，占国内生产总值的比重为3.0%。2011年，这两个数字分别下降到了4.3%和2.1%。

　　主席先生，中国政府努力扩大开放、扩大进口、扩大内需，是贸易趋向平衡的重要原因。

　　这几年，中国政府一直通过实施低于最惠国税率的进口暂定税率和关税减免措施，鼓励国内经济社会发展和人民生活质量提高所需要的产品的进口，发挥进口对宏观经济平衡和经济结构调整的作用。

　　2010年和2011年，中国分别有600多个8位税号的产品实施了较低的年度进口暂定税率。2012年，实施较低年度进口暂定税率的产品增加到了730多个税号，平均税率4.4%，比最惠国实施税率降低50%以上。

　　主席先生，出口方面，中国仅次于欧盟，是全球第二大出口国。但是与许多成员不同的是，中国的出口中包含有很高的进口成分。这也是为什么中国同时成为了美国和欧盟之后的第三大进口国的原因。
以电子信息产品为例，电子信息产品出口约占中国出口总额的三分之一，2010年出口额约6000亿美元。但是其中中国增值部分仅占40%。相比而言，美国和欧盟对华出口中，本国增值部分一般都占到80%以上。

　　2、投资政策和投资环境

　　主席先生，中国充分利用比较优势，坚持不懈扩大开放，努力营造良好投资环境，不断提高贸易投资便利水平，所以成功地成为了全球价值链中不可或缺的制造环节，多年以来一直是全球最具吸引力的投资东道国之一。

　　2010年和2011年，中国吸收外商投资在经受国际金融危机的冲击之后实现了平稳回升，实际使用外资金额分别达到1057.4亿美元和1160.1亿美元，同比分别增长17.4%和9.7%，连续两年创下了突破1000亿美元的历史新高。

　　但是，进入2012年以来，1至4月中国实际使用外资金额同比出现了2.38%的降幅，并不乐观。这很大程度上与我开始时提到的欧盟对华投资出现大幅下降有关。我们对此也将继续进行观察和分析。

　　中国政府2011年对《外商投资产业指导目录》进行了最新修订，继续拓宽对外资的开放领域，尤其鼓励外资投向中西部地区和先进制造业、高新技术产业、节能环保产业、现代服务业。投资审批程序更加简化，便利化水平进一步提高。

　　在服务贸易方面，中国在一系列具体部门采取了超越服务贸易减让表承诺的自主开放措施。

　　旅游服务领域，2010年8月，外资旅行社经营中国内地居民出境旅游业务开始试点。

　　保险领域，2012年5月1日起，机动车第三者责任强制保险向外资保险公司开放。

　　证券服务领域，外国投资者在合资证券公司中的持股比例上限由33%提升到49%，并开始允许设立外资持股比例不超过49%的合资期货经纪公司。

　　知识产权保护是外国投资者普遍关心的重要问题之一。上次审议以来，中国政府大力推进政府机关和企业的软件正版化工作，开展了打击侵犯知识产权和制售假冒伪劣商品的专项行动。中国政府还成立了常态化的工作领导机制，把打击侵权假冒作为一项长期任务，常抓不懈。

　　上次审议以来，中国还与乌兹别克斯坦、刚果（金）、利比亚、还有日本和韩国一起商签了新的投资保护协定。截至2012年5月底，中国已经与128个国家和地区签署了131个双边投资保护协定。中国和加拿大的这一协定谈判也已经完成，将于近期签署。

　　在鼓励欢迎外国直接投资来华的同时，中国的对外投资也进入了加快发展的阶段。2009年末，中国对外直接投资存量占全球存量的1.3%，2010年末上升到了1.6%。2010年和2011年，中国非金融类对外直接投资都超过了600亿美元。

　　3、中国的多双边经贸关系

　　主席先生，中国是多边贸易体制的坚定支持者和维护者。去年，中国政府隆重纪念加入世贸组织十周年。中国在加入时作出的广泛承诺一一得到落实，极大地促进了中国与各成员经济贸易关系的发展。
中国反对保护主义，努力克制使用贸易救济措施，坚持通过对话与合作，以多边规则为依据处理贸易争端，并尊重世贸组织争端解决机构的裁决。

　　根据世贸组织、经合组织和联合国贸发会议最近发布的二十国集团国家贸易措施报告， 2011年10月至2012年4月的半年间，中国发起的贸易救济措施比此前半年减少25%。

　　关于多哈回合谈判，中国对一切有助于推动谈判的努力持开放态度，但同时认为，不能放弃发展在谈判中的核心地位，不能放弃多边谈判的主渠道作用。

　　与此同时，中国也愿意以开放和包容的态度继续与各国各地区推进区域和双边合作。在推进贸易自由化的进程中，中国政府坚持多边为主、区域为辅的政策。

　　主席先生，作为发展中国家，对南南合作的高度重视是中国一直以来的政策传统。2008年以来，中国已经连续4年是最不发达国家的最大出口市场。根据世贸组织秘书处的统计，2010年，中国自最不发达国家的货物进口总额比上年增长58%，约占这些国家出口总额的四分之一。2000年至2010年，中国从最不发达国家的进口年均增长27%。

　　为了推动落实香港部长级会议提出的对最不发达成员“免关税免配额”的倡议，尽管面临困难，中国仍决定进一步扩大对最不发达国家的市场开放水平。胡锦涛主席2011年11月在法国戛纳二十国集团领导人峰会上已经宣布，中国将把对最不发达国家实施零关税的商品在全部税则税目中的比例由原来承诺的95%进一步提高到97%。

　　对于许多非洲国家，包括许多最不发达国家关心的棉花问题，中国与非洲主要产棉国在世贸组织第八届部长会议期间启动了在多边框架下的棉花领域合作。中国为他们提供良种、化肥、农机、技术以及人才方面的培训的承诺现在已经在落实之中。

　　主席先生，前几天，世贸组织秘书处在促贸援助“中国项目”下举办了最不发达国家加入世贸组织圆桌会议。我们很高兴地在北京欢迎了世贸组织总干事拉米先生，萨摩亚副总理福诺托先生阁下，还有其他12个成员和申请加入方的部长和大使们，包括我们今天的讨论人施密特大使先生，他是世贸组织最不发达国家分委员会的主席。

　　在南南合作框架下，中国在双边也继续向其他发展中伙伴提供力所能及的帮助。这包括进一步免除50个重债穷国和最不发达国家2010年到期未还的政府无息贷款；2015年以前再派遣3000名农业专家和技术人员，为发展中国家再培训8万名各类人员；以及继续向发展中国家提供基础设施建设等发展项目援助等等。

　　主席先生，以上是我对上次审议以来中国经济、贸易发展情况和相关政策的概述。

　　关于未来前景，主席先生，2011年3月，第十一届全国人大第四次会议批准的《国民经济和社会发展第十二个五年规划纲要》，就中国未来五年的发展给出了以扩大内需、加快转变经济增长方式为主要内容的清晰路线图。

　　今后五年，中国将保持国内生产总值年均7%以上的增长，服务业占国内生产总值的比重将由2010年的43%提升至2015年的47%以上。中国将为4500万人创造就业机会，建设3600万套保障性住房，进一步提高养老、医疗等社会保障水平。

　　今后五年，随着中国扩大内需战略的有效实施，中国消费结构将进一步升级，居民消费潜力将进一步释放。预计社会消费品零售总额将年均增长15%以上，2015年达到32万亿元人民币，使中国国内市场的规模位居世界前列。中国的进口总规模5年内也将超过８万亿美元，给世界各国各地区带来巨大商机。
中国政府将在未来五年以更大的决心和勇气推进各个领域的改革，特别是经济体制的改革。中国也将实行更加积极主动的开放战略，继续不断拓展新的开放领域和空间，扩大和深化同各方利益的会合点。
中国将以开放、包容、合作和负责任的态度，与贸易伙伴一起，共同营造、维护良好的国际经济贸易环境，推动多边贸易体制向均衡、普惠、共赢的方向发展。我们期待在我们共同努力下，我们所珍视的与各国各地区的互利共赢的经济贸易关系能够更加健康稳定地发展。

　　主席先生，我的发言到此结束。下面，我愿意倾听讨论引导人和其他成员的评论和问题。

　　谢谢。


Statement by H. E. Mr. Yu Jianhua
Assistant Minister of Commerce, Head of the Chinese Delegation
at the Fourth WTO TPR of China
12 June 2012

Distinguished Mr. Chairman Ambassador Munoz,
Distinguished Director General Lamy,
Distinguished Discussant Ambassador Smidt,
Excellencies, dear colleagues,

I am very pleased to head the Chinese delegation to attend the fourth WTO Trade Policy Review of China. On behalf of the Chinese delegation, I would like to thank you, Mr. Chairman, for your warm opening remarks.

I would also like to thank His Excellency Ambassador Steffen Smidt, for kindly agreeing to act as our discussant. And by the way, congratulations on your first victory in Euro 2012 and I hope Danish team could pick up this momentum to go further and further in the tournament. My gratitude also goes to colleagues in the TPR Division of the WTO Secretariat, especially the capable team led by Mr. Richard Eglin. We appreciate all the efforts they have put into the preparations for the upcoming two-day meeting. Specifically, the Secretariat Report they draft contains a lot of factual information on China's economic and trade policies in the past two years, and can serve as a good base for the smooth process of this Review.

Mr. Chairman, as of now, we have received 1720 questions from 30 members till yesterday for this Review. We have just received question from Ecuador, which we will provide answer as soon as possible. In view of the heavy workload and the short time frame, officials in dozens of Chinese government agencies have been working around the clock to answer these questions. I am proud to inform you and the Membership that written responses are ready for all of them. In the limited cases where English translation is still ongoing, it has been so indicated in the response on the table. We will do our best to finish translating the rest by Thursday so that they could be circulated in time at the second session.

Mr. Chairman, since the last Review, China has been confronted with a complicated economic and trade environment. However, to promote robust, sustainable, and balanced growth, the Chinese government has deepened reform and opening up, expanded domestic demand, and accelerated economic restructuring and the transformation of the economic growth model. The development of China’s economy and trade has maintained a good momentum, and China's economic and trade links with other countries and regions have been further strengthened on the multilateral, regional, and bilateral fronts.

Mr. Chairman, my presentation will mainly cover two parts. The first is the macro-environment for China’s economy and trade, and the second is trade and investment development and related policies. In the end, I will briefly touch upon future prospects.

Part one, on macro environment.

1, Challenges China faces

Since the last review, external environment for China's development has been very complicated. The ongoing financial crisis and the non-conventional monetary policies adopted by some members caused many negative impacts on China.

External demand has been sluggish, and the influence of the Eurozone debt crisis has been deepening. The European Union is China's largest trading partner. In the first quarter of 2010 and the first quarter of 2011, China’s export to the EU grew by 31% and 17.2% respectively over the previous year. In sharp contrast, the year-on-year figure for 2012 dropped by 1.8%. EU’s investment in China increased by around 10% in the first quarter of 2010, 26.54% in the first quarter of 2011, but decreased by 31.2% in the first quarter of 2012.

The Chinese currency RMB continues to appreciate. According to the Bank of International Settlements, the nominal effective exchange rate of the RMB was up by 21.37% compared with 2005 when the reform of the exchange rate regime kicked in, and the real effective exchange rate was up by 29.38%.

Against this background, many Chinese companies, in particular the export-oriented SMEs along the coastal regions are having a hard time dealing with dwindling orders, rising costs, and the difficulty of financing.

Inside China, the government has been under much pressure to stabilize price. During the ten years from 2000 to 2009, CPI increased by only 1.85% on average every year. But from the first quarter of 2010 to the third quarter of 2011, CPI’s growth rate surged from 2.2% to 6.2%.

The cost of labor has shot up while the aging population brings more challenges. In 2010, 30 out of the 31 provincial-level governments raised minimum wage by an average of 22.8%. In 2011, 25 of them raised the benchmark by another 22% on average.

China has 185 million elderly people, and it is the only country in the world to exceed the 100 million threshold. The elderly population is growing by 3% every year, and is expected to climb to the peak of 487 million by 2053, which is not far from now, taking up 34.8% of the whole population, compared to the current figure of 13.3%.

The government has taken a host of control measures including in the real estate sector to curb price hikes. However, the measures have backfired on consumption. Car sales in China rocketed by 46% in 2009 and 34% in 2010, but only edged up by 2.5% in 2011. Rural market boasts great potential, but it is a long and slow process to materialize this potential. China must address the long term problems of unbalanced, uncoordinated and unsustainable development of its economy, while resolving short term imperatives.

2, Countermeasures by the Chinese government and effects

Facing such an environment, the government has adopted a host of policies to deepen reform and opening up, improve people’s livelihood, and expand domestic demand, in particular consumption demand.

In September 2011, the revised Individual Income Tax Law came into effect, slashing personal income tax by a large margin. This is the second round of individual income tax cut since 2008, reducing the number of taxpayers from 84 million to 24 million.

Social security system has seen breakthroughs in the past two years. The framework of a social security system covering 1.3 billion urban and rural residents is basically put in place. While the sustainability of the system is insured, the level of insurance has been boosted. A better social security system will certainly contribute to expanding domestic demand, in particular consumption demand in the long run.

In terms of deepening reform, in the past two years, the reform of resource tax and the pilot reform on converting business tax to VAT have been launched. Reform of RMB exchange rate pricing mechanism and the cross border use of RMB have made headways. By the end of March 2012, the People’s Bank of China had signed bilateral local currency swap agreements with 17 countries and regions. 83 overseas institutions can now invest in China’s bond market, including monetary authorities, international financial institutions, commercial banks, insurance companies and fund management companies.

In merely two months after the Chinese Government Report was drafted, the Chinese government has continued to take essential reform measures in many key areas.

The central bank expanded the floating range of RMB against the U.S. dollar in the foreign-exchange market. The Ministry of Transport, Ministry of Railways, China Banking Regulatory Commission, and the State Assets Supervision and Administration Commission announced a series of opinions on private capital’s access to certain sectors or their participation in the reform and restructuring of state owned enterprises. Just a few days ago, that is on June 8, China’s central bank decided to cut RMB benchmark interest rates by 0.25 percentage points, and to adjust the upper limit of the floating range for deposit interest rates to 1.1 times the benchmark rate and the lower limit of the floating range for loan interest rates to 0.8 times the benchmark rate. This is yet another important step towards market-based interest rates.

Under the efforts of the Chinese government, 2010 and 2011 witnessed a strong growth in China's economy. GDP was up by 10.4% and 9.2% respectively, while CPI growth dropped to 4.6% in the fourth quarter of 2011. In the first quarter of 2012, GDP grew by a fairly strong 8.1%, while CPI growth further dropped to 3.8%.

Economic and social development has become more balanced. This is manifested by the declining share of current account surplus in GDP, which dropped from 10.1% in 2007 to 2.8% in 2011, and to merely 1.2% in the first quarter of 2012. The level of urbanization exceeded 50% in 2011, signaling a historic change in social structure.

Part two, on trade and investment development and related policies.

1, trade development.

Mr. Chairman, China attaches equal importance to export and import. Import growth has outpaced export in the past two years, indicating that trade is on the way to become more balanced.

In 2010 and 2011, China's total export of goods was 1.58 trillion U.S. dollars and 1.9 trillion U.S. dollars, up by 31.3% and 20.3% respectively over the previous year, while the total import was 1.4 trillion U.S. dollars and 1.74 trillion U.S. dollars, up by 38.8% and 24.9% respectively.

Trade surplus in goods has been going downward in recent years. Surplus hit a peak of 298.1 billion U.S. dollars in 2008, but then dropped to 195.7 billion U.S. dollars in 2009, 181.5 billion U.S. dollars in 2010, and 155 billion U.S. dollars in 2011.

In 2010, trade surplus in goods took up 6.1% of total trade and 3.0% of GDP. In 2011, the figures dropped to 4.3% and 2.1% respectively.

Mr. Chairman, an important reason for the more balanced growth of trade is that the Chinese government has been making greater efforts to further open up, expand import, and stimulate domestic demand.

During these years, the Chinese government has set interim import tariffs that are lower than the MFN rates, and made tariff reductions and exemptions. We hope to import more products that can stimulate domestic economic and social development and raise people's living standards. In this way, import could contribute to macroeconomic balance and economic restructuring.

In both 2010 and 2011, over 600 eight-digit tariff lines were subject to low interim import tariffs. In 2012, the coverage extended to more than 730 tariff lines, with an average tariff rate of 4.4%, 50% lower than the MFN tariff rate.

Mr. Chairman, China is now the second largest exporter next to the EU. However, it is different from many other WTO members as its export contains a large proportion of import. This explains why China is also the third largest importer after the U.S. and the EU.

Take information technology products for example, they take up nearly one third of China’s total export. The export of such products in 2010 was around 600 billion U.S. dollars, but of which only 40% of the value was added in China. In comparison, domestically added value in exports from the U.S. and the EU to China usually accounts for over 80%.

2, Investment policies and climate

Mr. Chairman, China has fully capitalized on its comparative advantages, adhered to reform and opening up, endeavored to create a sound investment climate and facilitated trade and investment. It has become an indispensable manufacturing link in the global value chain, and has been one of the most attractive investment destinations for many years.

In 2010 and 2011, foreign direct investment rebounded after the backlashes of the international financial crisis. Paid-in foreign investment registered 17.4% and 9.7% growth in these two years, reaching 105.74 and 116.01 billion U.S. dollars respectively, exceeding the threshold of 100 billion U.S. dollars for two consecutive years, setting record highs.

In the first 4 months of 2012 however, paid-in investment dropped by 2.38% over the same period last year, which is not optimistic. This is probably due to the sharp fall of EU’s investment as I mentioned earlier. We will pay close attention to this trend and make further analysis.

In 2011, the Chinese government revised the Catalogue for the Guidance of Foreign Investment Industries, making more sectors open to foreign investment. Investments are particularly encouraged in central and western China, as well as in such sectors as high-end manufacturing, high and new technologies, energy conservation and environmental protection and modern services. We have also further simplified investment review and approval procedures to facilitate investment.

In terms of trade in services, China has taken voluntary and autonomous liberalization measures in a number of sectors that go beyond our WTO accession commitments.

In tourism, from August 2010, foreign travel agencies began to offer outbound travel services to mainland citizens on a pilot basis.

Pilot project also began in 2011 to allow the establishment of wholly-foreign-owned medical institutions in major Chinese cities.

In insurance, from 1 May 2012, the market of the compulsory third party liability insurance for automobiles was open for foreign services suppliers.

In securities, the foreign equity cap in joint venture securities firms was raised from 33% to 49%, while joint venture futures companies with no more than 49% of foreign equity are also allowed to establish.

Protection of intellectual property rights is a key concern for foreign investors. Since the last Review, the Chinese government has been pushing forward software legalization in government agencies and enterprises, and launched nationwide campaigns to crack down on IPR infringement and manufacturing and sales of shoddy and counterfeiting products. The Chinese government also established a permanent high-level working group to ensure uninterrupted efforts on fighting infringement for a long time to come.

Since the last review, China has signed new bilateral investment treaties with 5 countries, namely Uzbekistan, the Democratic Republic of the Congo, Libya, and Japan and Korea together. By the end of May 2012, China has signed 131 bilateral investment treaties with 128 countries and regions. The negotiations between China and Canada have also concluded, and the agreement is expected to be signed in the near future.

While inbound investment is welcome, outbound investment has also picked up pace. China's outbound investment took up 1.3% of the world total FDI by the end of 2009 and rose to 1.6% by the end of 2010. In both 2010 and 2011, China's non-financial overseas investment exceeded 60 billion U.S. dollars.

3, China’s bilateral and multilateral trade and economic relations

Mr. Chairman, China staunchly supports and upholds the multilateral trading system. Last year, the Chinese government celebrated the 10th anniversary of China's accession to the WTO. China has honored the tremendous commitments it made during the accession, which greatly promoted trade and economic relations between China and other WTO members.

China is strongly against trade protectionism. We have refrained from using trade remedies and have been trying to settle trade and investment differences through dialogues and cooperation according to multilateral rules. We respect the decisions made by the WTO dispute settlement mechanism.

According to a recent report on G20 trade measures by the WTO, the OECD and UNCTAD, during the 6 months between October 2011 and April 2012, the number of trade remedy measures initiated by China was reduced by 25% over the previous 6 months.

Regarding the Doha development agenda, China is open to all efforts that may facilitate the negotiations. Meanwhile, China believes that members should not abandon the development mandate, and should not deviate from the multilateral approach.

At the same time, China is willing to advance regional and bilateral cooperation with other countries and regions with an open and inclusive mind. In promoting world trade liberalization, the Chinese government believes that the multilateral system should play a major and fundamental role, while regional cooperation being supportive and supplementary.

Mr. Chairman, as a developing country, China has always attached great importance to South-South Cooperation. China has been the largest export market for the least developed countries for 4 consecutive years since 2008. According to statistics of the WTO Secretariat, in 2010 China’s import of goods from the least developed countries increased by 58% over the previous year, accounting for nearly a quarter of the LDCs’ global total export. From 2000 to 2010, China’s import from the LDCs had been growing by an average of 27% annually.

Following the duty-free-quota-free market access initiative for the least developed members adopted at the Hong Kong Ministerial Conference, China decided to further expand market access for the LDCs in spite of our own difficulties. During the G20 Summit held in Cannes of France in November 2011, Chinese President Hu Jintao announced that China would give zero-tariff treatment to 97% of tariff lines products from the least developed countries, up from our former promise of 95%.

On the issue of cotton, which is an important concern for over 30 African countries, many of which LDCs, China launched a multilateral cooperation project on cotton with the major cotton producers in Africa during the Eighth WTO Ministerial Conference. China is now earnestly implementing its commitments of offering improved seed varieties, chemical fertilizers, agricultural machines, advanced techniques and human resource training.

Mr. Chairman, a few days ago a roundtable for LDCs’ WTO accession was held by the WTO Secretariat under the China’s LDC and Accessions Program. We were very pleased to welcome in Beijing WTO Director-General Lamy, His Excellency Mr. Fonotoe Nuafesili Pierre LAUOFO, Vice Prime Minister of Samoa, and ministers and ambassadors from 12 other WTO members and acceding candidates , including our discussant Ambassador Smidt who chairs the LDC Sub-Committee.

Within the framework of South-South cooperation, China has also been providing help to other developing members to the best of its capacity through bilateral channels. China has canceled the interest-free debts that were due by the end of 2010 from 50 heavily indebted countries and least developed countries. We have promised to send another 3000 agricultural experts and technicians to other developing countries by 2015, and provide training opportunities for 80,000 professionals. We have committed to continue providing assistance for development projects such as infrastructure for other developing countries.

Mr. Chairman, I just made a brief account on China's trade and economic development and related policies since the last Review.

About future outlook, Mr. Chairman, in March 2011, the Fourth Session of the 11th National People's Congress adopted the 12th Five-Year Plan for National Economic and Social Development, which outlined a clear roadmap for China's development in the next five years, featuring expanding domestic demand and accelerating the transformation of the economic growth model.

In the next five years, China will maintain a growth rate of over 7%. The share of services in GDP will be raised from 43% in 2010 to above 47% in 2015. 45 million new jobs will be created. Another 36 million low-income apartments will be built. Pension and medical insurance programs will be bolstered.

In the next five years, as effect of the strategy to expand domestic demand is felt, China’s consumption structure will be further upgraded, and consumption potential will be further unlocked. Social retail sales is expected to grow by 15% on average every year, reaching 32 trillion RMB yuan in 2015, making China’s domestic market one of the largest in the world. China’s total import will surpass 8 trillion U.S. dollars within 5 years, only to bring huge business opportunities to countries and regions all over the world.

The Chinese government will push forward reform in all fronts with greater determination and courage, particularly reform in the economic system. China will adopt a more proactive opening up strategy, expand and deepen opening up and the convergence of interests with other parties.

China will take an open, inclusive, cooperative and responsible attitude in building and maintaining a sound international economic and trade environment together with its trading partners, and in shaping a balanced multilateral trading system featuring benefit for all. We hope that with our joint efforts, the mutually beneficial and win-win trade and economic relations between China and all other WTO members could continue to develop soundly and steadily.

Mr. Chairman, this is the end of my statement. I am ready and eager to listen to comments by the Discussant as well as other members.

Thank you.