China's entry into the WTO will have ten major impacts on the future of China's economy.

In addition, China's accession to the WTO will greatly promote cross-strait economic and trade exchanges and be conducive to the great cause of peaceful reunification of the motherland. This has brought Hong Kong the third opportunity of economic adjustment and transformation, but it has also brought challenges. It also analyzes the different influences, advantages and disadvantages of different industries after China's entry into WTO.

Keywords:: the economic impact of China's accession to the World Trade Organization

Author brief introduction Zheng Bingwen, vice president, doctor and associate professor of Graduate School of Chinese Academy of Social Sciences. (Beijing Postal Code: 1 00 1 02)

1999165438+1October 15. The Chinese and American governments signed a bilateral agreement on China's accession to the World Trade Organization. The signing of this agreement has made China take a decisive step on the road to joining the World Trade Organization. The signing of this agreement was hard-won. It shows that China, the largest potential market in the world, will not only be developed by China itself, but also be conditionally opened to the world for all countries in the world to participate in the development. So, what is the major impact of China's entry into WTO on China's economy?

Advantages and disadvantages of China after its entry into WTO

(A) China's accession to the WTO will form a "win-win" result.

China's accession to the World Trade Organization can actually be regarded as the result of "win-win" among China, the United States and the World Trade Organization. As we all know, although China is a developing country, its economic aggregate ranks seventh in the world and it has become the tenth largest trading country in the world. 2 1 century will have a more significant impact on the world economy. Without China's accession, the World Trade Organization would be incomplete and its role would be greatly affected. China's accession to the WTO is a necessary condition for its universality. For the United States, China's entry into WTO has realized the pattern of bilateral trade development between China and the United States and the general needs of interest-related, and can gradually solve the huge trade deficit with China.

For China, after 13 years of hard negotiations, it finally achieved the goal of joining the WTO as a developing country, and the contents of the bilateral agreement between China and the United States fully reflected this fundamental principle. China's accession as a developing country is of great significance, which means that China can enjoy the preferential arrangements of developing countries, the protection of infant industries, export subsidies and flexible provisions of the tariff system according to law. For example, after six years in the automobile industry, China can still maintain the import tax rate of 25%, and most markets in the agricultural sector are only allowed to be monopolized by the state (wheat, corn, rice, cotton, sugar, fertilizer, etc.). Ensure that the state has sufficient macro-control measures to avoid harming farmers' interests; The banking industry is also gradually opening up in accordance with the transition period. Moreover, some areas are still closed to the market, which still needs the approval of the China municipal government. The above buffer opportunities are only applicable to developing countries. In the Sino-US agreement, China is not prohibited from invoking the WTO exception clause, which means that China can invoke the exception clause specifically applicable to developing countries and objectively recognize China's status as a developing country, which means that China can invoke the exception clause such as infant industry protection and take temporary measures to make up for the damage caused to the domestic market by powerful external shocks.

In a word, China's accession to the WTO as a developing country ensures that its obligations after its accession to the WTO are compatible with the current development level of China, thus greatly reducing the negative impact on China's industry after its accession to the WTO.

(2) China's accession to the WTO marks a new stage of reform and opening up.

More than 20 years of practice has proved that the earlier the reform and opening up, the faster the development. At the same time, we should also see that after 20 years of reform and opening up, China has been at a critical moment: state-owned enterprise reform, weak market, unemployment, social security and so on. The data used in this paper are all quoted from "Research Report on China's WTO Entry: China's Industry's WTO Entry" edited by Yu Yongding and Zheng Bingwen, Social Science Literature Publishing House, 65438+ 1999.

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All the difficulties encountered are related to the overall situation of social, political and economic stability. If these key issues are not handled well, they will retreat if they do not advance. Logically speaking, China's entry into WTO can promote the further development of reform and break through the bottleneck in the process of reform with the help of foreign capital and external power. Therefore, in this sense, China's successful accession to the WTO indicates that China's reform and opening up has entered a new stage.

(3) China's accession to the WTO will help to participate in the process of economic globalization.

As a developing country with great potential and huge economic system, China can exert its influence on the rules, participate in the formulation of rules, rather than passively implement them, so as to enhance China's position in the international community, enhance the bargaining power of developing countries and regions, and promote its integration into the mainstream of the world economy as soon as possible, participate in the process of economic globalization, and complement the world economy; At the same time, it will help to break domestic local protectionism and departmental monopoly, learn from the experience of member States in establishing modern enterprise systems, and accelerate the improvement of China's socialist market economic system and the rule of law.

(4) China's accession to the WTO will promote the rational allocation of resources and improve its comprehensive national strength.

It is estimated that in 2005, China's GDP and social welfare income will increase by195.5 billion yuan and159.5 billion yuan respectively (calculated at the price of 1995), accounting for 1.5% and 1.2% of the GDP of that year. Its huge income mainly comes from the efficiency improvement brought by the reallocation of resources according to comparative advantages. In addition, China's accession to the WTO has brought great opportunities to some industries. For example, the developed countries that import textiles have started to implement the agreement of 1995 to phase out textile import quotas, but they have been increasing the textile quota restrictions on China and demanding that China continue to sign quota agreements, thus reducing China's textile exports. After China's accession to the World Trade Organization, according to its regulations, the textile quotas must be phased out before 2005, and the discriminatory quotas of the United States and other developed countries that restrict China's textile exports will be cancelled. Textiles, clothing, shoes and hats are China's traditional export commodities, accounting for about 20% of China's total export.

Apart from the textile and clothing industry, China's accession to the WTO is also beneficial to some chemical products and some steel products in China. It is also beneficial to color TV, washing machine, electric fan, bicycle, toy, pen industry, stationery, canned food industry and some electromechanical products with mature scale and technology. (5) China's accession to the WTO will be conducive to introducing foreign capital and stimulating domestic demand.

In the long run, after China's entry into the WTO, the investment environment will change greatly, and the transparency of laws and the realization of national treatment will attract a lot of foreign investment. It is estimated that by 2005, foreign investment will exceed $654.38+00 billion (compared with less than 250 billion in the whole period of 654.38+00 in the 1990s).

The economic benefits after China's entry into WTO come from China's participation in the international division of labor and its sharing of the efficiency gains brought about by economic globalization. However, the above-mentioned efficiency gains are not evenly distributed among various industrial sectors, and the result is bound to be a major economic restructuring. Protected and capital-intensive sectors such as automobiles, instrumentation, cotton and wheat will greatly affect their output level, while labor-intensive sectors such as textiles and clothing will benefit. In a word, joining the WTO will also bring great pressure and severe challenges to China.

(6) After China's entry into WTO, there will be some institutional shocks and conflicts.

There is a fundamental similarity between China's market economy system and the basic principles of wTo, that is, market economy. However, there are also many significant gaps between the current economic system and the basic principles of the WTO. For example, in addition to the economy, there are many differences in ideas, culture, politics, traditions and so on, which will inevitably bring about huge institutional shocks and conflicts. On the one hand, we should build a socialist market economic system with China characteristics; on the other hand, we should follow the "General Rules" of the WTO and participate in the international division of labor. A series of brand-new major theoretical and practical issues will be in front of us. We need to use the general principles of the world market economy and combine the reality of China to rebuild and improve the market economic system with China characteristics. But the situation is more complicated and severe: we should not shout "Wolf" of WTO, but regard it as a "double-edged sword". The problem is how to use it freely and make it serve the construction of the socialist market economic system with China characteristics. Recent problems, such as some unprotected industries or large and medium-sized state-owned enterprises, will be greatly affected, and their nature, time, scope and degree can not be mentioned in the same breath as before China's entry into WTO; Compared with today, the industry coverage, scale, economic influence and control of joint ventures or wholly-owned enterprises will undergo great changes. In short, it takes a long time to adjust and adapt to institutional differences.

(7) Macro-control is more difficult, and the possibility of being affected by fluctuations in the world economy is increased.

After China's entry into WTO, the dependence of China products on the international market will increase, and the dependence of fixed capital investment on the international capital market will also increase. Especially according to the promised period, after the banking, securities, foreign exchange and other markets are fully opened several years later, the fluctuation of international commodity market and international capital market will definitely have a very obvious impact on China, and the international financial turmoil will have a greater impact on China than before. Admittedly, opening the financial services market does not mean realizing the free convertibility of RMB under capital account, but it will still have a great impact on China's banking system. Once there is a problem with financial security, it will inevitably have a major impact on national security.

(8) Labor transfer will be greatly adjusted, and employment pressure will increase.

The agricultural sector in China has a high proportion of employment, accounting for more than 60% of the total employed population; Due to the poor intensification of agricultural production, the lack of advantages in the production of grain and other bulk products, and the large gap between prices and the international market, after China's accession to the WTO, the agricultural product market has been hit hard, and a large number of agricultural laborers need to be transferred to industry and service industries. According to research, from 1999 to 20 10, about 100000 agricultural labor force needs to be transferred to other departments. The transfer of labor force between departments or the adjustment of industrial structure will inevitably bring corresponding adjustment costs. In addition, after China's entry into WTO, the sharp drop of tariff and non-tariff barriers will inevitably have an impact on industries with insufficient competitiveness. Some industries and products with high capital and technology content, such as information, finance, chemicals, medicine, automobiles and machinery, will be forced to gradually withdraw from the market, thus creating new employment pressures. During the period of 1999, there were about 7 million laid-off workers from state-owned enterprises, and their monthly living expenses were 170 yuan. Together with the social insurance premium paid, they can get about 253 yuan. The surge in the number of laid-off workers will inevitably bring new pressure to the national finance under the imperfect social security system.

(9) It will aggravate the unfair income distribution.

After China's entry into the WTO, the impact on the agricultural sector may lead to a decrease in the income of rural residents. Although part of the agricultural labor force can be transferred to other departments, by 2005, the real income of rural residents will be reduced by about 2. 1%, while the per capita real income of urban residents will increase by 4. 6%. The widening income gap between urban and rural areas will have a potential negative impact on social stability.

(10) Strengthening intellectual property protection will give up a certain market share.

Intellectual property involves every industry, but it does not belong to any industry. After China's accession to the WTO, it must fully fulfill its rights and obligations in the field of intellectual property rights, strengthen the protection of intellectual property rights, especially effectively and forcefully crack down on counterfeiting and piracy. In this way, those enterprises that lack innovation ability and brand and rely on imitation will be eliminated and eventually have to give up a certain market share. But in the long run, if Chinese enterprises want to survive, develop and participate in international competition to a greater extent, they must rely more on and use intellectual property rights to motivate and protect themselves and improve their ability and level of mastering and using intellectual property protection.

Two, after China's accession to the WTO, the three places.

The Taiwan Province authorities' economic and trade policy of "no haste, be patient" towards the mainland has always been the main factor restricting the cross-strait economic and trade development. Since 1990s, although Taiwan Province authorities have taken some measures to ease cross-strait economic and trade relations, they have failed to break through the situation of "non-governmental, indirect and one-way". Nevertheless, the reform and opening up of the mainland of the motherland objectively promoted the further development of cross-strait economic and trade cooperation; Over the past 20 years, the two sides of the strait have formed interdependent and mutually beneficial economic relations, which have brought practical benefits to the two sides of the strait and injected vitality into the island-like economy of Taiwan Province Province. After China's entry into WTO, the two sides of the Taiwan Strait will greatly promote economic and trade exchanges, thus realizing the possibility of mutual benefit and win-win.

By 2005, the foreign trade of the mainland of the motherland will soar from more than 300 billion US dollars to 600 billion US dollars; At present, the annual indirect trade volume between Taiwan Province Province and Chinese mainland has exceeded $30 billion. After China's entry into WTO, Taiwan Province Province, as an independent customs territory, will also join the organization, and will have to cancel most of the bans on direct trade with the mainland, which is already the second largest trading partner of Taiwan Province Province, and the total trade volume will be further expanded. For example, although Lee Teng-hui's "two-state theory" seriously interfered with the investment and trade enthusiasm of Taiwanese businessmen in the first half of 199, the trade volume in the first eight months increased by 8% compared with the same period last year, reaching1600 million US dollars. After China's entry into the WTO, the reduction of tariffs will further promote the export of the most competitive products in Taiwan Province Province, such as petrochemical products, steel and electronic products, to Chinese mainland.

In addition, China's accession to the World Trade Organization will be beneficial to the great cause of the motherland's reunification. According to the relevant provisions of the WTO, after the two sides become members of the WTO, Taiwan Province Province should open the "three links", that is, the issue of "three links" between the two sides will be put on the agenda.

China's accession to the WTO is full of opportunities for Hong Kong. The return of Hong Kong to the motherland has brought closer economic and trade relations between Hong Kong and the Mainland. China's accession to the WTO will certainly promote the further development of Hong Kong's economic and trade relations with the world. Throughout the postwar history, every upgrading of industrial structure and economic transformation in Hong Kong was driven by mainland factors. The first time was in the 1950s and 1960s. Due to the blockade and embargo of the mainland, a large number of workers moved to Hong Kong, which made the manufacturing industry develop unprecedentedly on the basis of a single traditional entrepot trade port and become one of the important manufacturing bases in Asia. The second time was 1978, after China implemented the reform and opening-up policy, Hong Kong's economic structure took a major turn, and a large number of labor-intensive manufacturing industries moved northward to the mainland, which promoted the rise of Hong Kong's financial services industry and transformed it from a manufacturing center into a financial service center. The history of the past 20 years proves that the more open China is, the more Hong Kong will benefit. China's accession to the WTO will not weaken Hong Kong's position, but it will certainly bring Hong Kong a third historic development opportunity: (1) The surge in foreign trade after China's accession to the WTO will definitely increase Hong Kong's share in trade volume and entrepot trade. Hong Kong has the latest and most powerful shipping and air transport facilities, and its role in East-West trade coincides with its prosperity. Although there are more competitors than before China's entry into WTO, the number of enterprises directly from the mainland has also increased accordingly. Excellent service and geographical advantages will make Hong Kong an irreplaceable "intermediary" position. (2) It is a basic fact that no mainland city can replace Hong Kong as a financial center. Hong Kong has always been a refuge for foreign investment from all countries. It has a sound banking system and a low tax system. "One country, two systems" will make Hong Kong's society stable and prosperous for a long time, with perfect credit, mature markets and cash pools from all countries. In this way, Hong Kong's position as a financial center will not only be maintained for a long time, but also become more and more prosperous. (3) Hong Kong has a unique trade and investment service system. Many business cooperation, business operations and commercial arbitration between the East and the West will still be held in Hong Kong, because Hong Kong lawyers, accountants and surveyors are very familiar with the laws and accounting systems in the Mainland, the business relations between Chinese in Hong Kong and Chinese investors, and the market and consumption habits in the Mainland. Foreign investment in China's finance, telecommunications, insurance and many other industries has provided more business opportunities for Hong Kong businessmen. Although the Mainland and Hong Kong have bright prospects of harmony and mutual benefit, China's accession to the WTO has brought both opportunities and challenges to Hong Kong. For example, the above-mentioned various service industries in which Hong Kong is currently in an advantageous position will be "attacked" both at home and abroad: the financial, legal, financial, accounting, trade, telecommunications and other service industries in the Mainland will rise rapidly, and the "learning effect" will make its state-owned enterprises and private enterprises compete with Hong Kong businessmen. On the other hand, some internationally renowned companies will flock to the mainland, thus forming a situation of competition with Hong Kong businessmen. In addition, after a large number of foreign direct investments in the mainland of China, Hong Kong capital will also encounter greater competition.

In a word, after China's accession to the WTO, opportunities and challenges coexist for Hong Kong. Faced with multiple pressures, all relevant industries in Hong Kong should seize the opportunity, constantly adjust and improve, and promote the third economic adjustment and transformation of Hong Kong in a timely manner.

Third, the impact of China's accession to the WTO on China's industry.

China's entry into WTO means that China's economic development has entered a brand-new period, with different impacts on different departments and industries, and long-term and short-term impacts on the same department and industry. We should study the WTO in depth with a positive attitude, seek advantages and avoid disadvantages, and take advantage of the opportunities brought by China's accession to the WTO to meet new challenges.

For a long time, China has implemented a protective tariff policy on the import of agricultural products. Although the import of grain, cotton and oil is exempted from customs duties, a higher tariff rate of 50- 100% is set for the import of other agricultural products, as well as non-tariff measures such as planned quotas, import licenses and technical hygiene standards testing. 1999165438+10/5 The bilateral agreement between China and the United States stipulates that China will reduce the average tariff rate of agricultural products to 17%, and the average tariff rate of agricultural products concerned by the United States will be reduced to 14.5% to/kloc. Gradually abolish export subsidies for agricultural products and all import quotas and quantitative restrictions within five years; Allow private importers to participate in import business. However, China will establish a maximum tariff quota system in the agricultural sector. After China's entry into WTO, it will not have much influence on the production of grain crops such as wheat, corn and rice in the near future. However, the import quota of cotton and vegetable oil has increased a lot compared with the actual import in the past, especially cotton quota has accounted for more than 15% of domestic output, and its output will be greatly affected in the near future. In the medium and long term, we should pay full attention to the impact on wheat and corn production. It is estimated that China's annual wheat import will increase from the current 2 million tons to 5 million tons, which will cause losses of about 5.5 billion yuan to farmers in China every year. Regional differences and the gap between the rich and the poor among farmers will also intensify. The government's macro-control ability on agriculture, especially grain, will be affected, that is, it can no longer control the import quantity below the quota by traditional methods through the monopoly position of the state-owned foreign trade department. In addition to the above problems, China agriculture has also gained many development opportunities: it can enjoy the universal treatment of WTO members, improve the export environment, expand export channels, and make up for the shortage of per capita resources in China; It provides favorable conditions for adjusting agricultural structure, import and export structure and improving product quality; It is conducive to promoting the reform of domestic agricultural product circulation system and promoting the development of agricultural industrialization.

Textile industry In the bilateral agreement between the Chinese and American governments, the United States promised that the textile import quota would be abolished in 2005, but the China administration allowed the United States to keep the textile quota exported from China to the United States for an additional period until 2009, so as to avoid the current market confusion in the process of textile quota cancellation. China's entry into the WTO will do more good than harm to the textile industry. After China's entry into WTO, trade barriers will be greatly reduced, and the degree of trade liberalization with member countries will be further improved, which will be beneficial to the diversification of China's textile export market and the steady growth of export volume. Textile trade disputes can also be reasonably resolved under the framework of WTO. In addition, after China's entry into WTO, the reduction of import tariffs on textile raw materials will help China textile enterprises to reduce production costs and improve their profit level and competitiveness. The improvement of international trade environment and the reduction of production cost will promote China's textile export. Furthermore, China's entry into WTO puts forward new requirements for the reform of the management system, planning system and investment system of China textile industry, that is, while promoting enterprises to enter the domestic and foreign markets, it also requires that the planning and investment system should be greatly changed, and the industry management function should be more turned to macro-control and service for enterprises, and more industrial policies should be used to realize industry management. Finally, China's entry into WTO will promote the structural adjustment of China's textile industry. In exchange for advanced technology at the expense of opening a certain market and enhancing the development potential of chemical fiber industry, China textile industry can accelerate its structural adjustment and enhance its international competitiveness.

After China's entry into WTO, the export environment will be improved. At present, the export of steel products in China enjoys the preferential tariff rate of most countries. After China's entry into WTO, the existing tariff concessions of other member countries will not significantly increase the export growth of China's steel products, but other member countries must eliminate non-tariff barriers such as quotas and licenses, which will have a favorable impact on China's steel products export, and China's unique metal resources and rare earth resources will play an advantage in international competition, which is conducive to the export of ferroalloy and wire rope products; (2) The investment pressure of scientific and technological progress and technological transformation has increased. After China's entry into WTO, the technological development of various industries in China will be accelerated accordingly, and the demand for high-quality and high-grade new products in domestic and foreign markets will gradually increase. At present, the investment in new product development in China's iron and steel enterprises is insufficient, while the cost of new product development in international iron and steel enterprises is generally above 4% of annual sales revenue. But as far as the present situation of China iron and steel enterprises is concerned, it is still difficult to reach this level in a short time. After China's entry into WTO, the domestic and international markets have extensive contacts, but the cost of reinvesting in China is high, which will affect the development of high-tech steel products in China. (3) The economic benefits of the steel industry will be greatly reduced. The prices of various steel products will tend to be in line with the international market. Due to the high production cost of China iron and steel industry, the economic benefits of the whole industry will be greatly affected in the near future. After China's entry into WTO, China's petroleum and petrochemical industry will face great pressure. (1) The impact of China's entry into WTO on China's petroleum and petrochemical industry shows great differences in various sub-industries.

Oil exploitation industry: crude oil import tariff is fixed, and the tax revenue per ton is only 16 yuan, so the tariff preference has little impact on the industry; Petrochemical industry: at present, it is mainly protected by high-level tariffs, and the average tariff level will be reduced from 17% to 9%, which will reduce the domestic market share of existing chemical fiber and chemical products by about 50%, but it will have little impact on large enterprises that have formed the production capacity of serialized products; Petroleum refining industry: this industry is the most affected, because the scale of industrial enterprises is small, there are many small refineries, and the refining cost is higher than the international general level; Refined oil sales industry: challenged by the entry of sales organizations of large foreign oil companies. (2) Economic benefits will be greatly affected. After China's entry into WTO, fulfilling market access obligations, such as reducing tariffs, canceling quota licenses, and giving foreign companies the right to trade and distribute, will lead to the import of a large number of petroleum and petrochemical products and the decline of market prices, which will seriously affect the economic benefits of China's petroleum and petrochemical industry. (3) Market share will decline. Some products lack price competitiveness, and the ability of new product development is weak. Under the competition of foreign products, the market share of domestic petroleum and petrochemical products will decline, and the production capacity of polyolefin is insufficient. According to the current level of competition, its market share will drop by nearly 10 percentage point. (4) It is more difficult to use foreign capital and introduce technology. This is because: first, international super multinational groups will gradually shift from the past capital monopoly to technology monopoly; Second, foreign capital is more inclined to set up factories in China; Third, in the case of global overproduction, the market has become a resource far scarcer than technology, assets and natural factors.

Generally speaking, the impact on the machinery industry after China's entry into WTO is limited, but a large number of enterprises lacking competitiveness will face difficulties, and it is inevitable that most mechanical products will be impacted. The affected objects can be roughly divided into two categories: high-tech, high added value and finishing industries; Low-level redundant construction, no industry with economic scale and product price higher than the international market price. After China's entry into WTO, the process of market integration of international and domestic machinery products will be accelerated, which will help promote the development of China's machinery industry: (1) It will promote the transformation of enterprise management mechanism from passive to active. The pressure of domestic enterprises facing global competition will further increase, prompting domestic enterprises to organize production and business activities according to the international standard system, market demand, price level and marketing practices, and promote technological progress. (2) It is conducive to technology introduction and utilization of foreign capital, and promotes the upgrading of mechanical products. At present, the industrial structure of the national economy is being adjusted and reorganized. After China's entry into the WTO, it will enhance the confidence of foreign investors and encourage them to invest in technology-intensive and capital-intensive machinery industries, thus promoting the adjustment and optimization of product structure and enterprise organizational structure. (3) China's machinery products can automatically enjoy MFN treatment and national treatment of importing countries, thus improving the export environment of machinery products and promoting the diversification of China's machinery products export market.

Automobile industry The automobile industry is the industrial sector with the highest degree of import protection. At present, the weighted average tariff rate of automobile products is about 55%, of which the tariff rate of cars is 80- 100%. After China's entry into WTO, in the transitional period of 2005, the tariff rate of automobiles in China will be reduced to 25-35%, the tariff rate of automobile parts will be reduced to 10%, and the automobile import quota will be increased by 15% every year on the basis of US$ 6 billion until it is completely abolished. The automobile industry will face a very severe test. After China's entry into WTO: (1) The import of automobile products, software and hardware technologies required for the development of automobile industry will increase substantially, and it is estimated that the output level of China's automobile industry will decrease by 65,438+065,438+0%. During the five-year transition period, the price of imported cars dropped by 2-3% annually on average. It is preliminarily estimated that the domestic market share of imported products will increase from the current 3% to about 10%. (2) The competitiveness of the automobile industry will be enhanced. China is the largest motorcycle producer in the world and has obvious international advantages. Trucks and mini-cars also have certain competitive advantages. Due to the gradual reduction of tariffs and quotas during the transition period, the impact on the car industry will be buffered, thus promoting the product structure optimization, output growth and competitiveness improvement of China's automobile industry. (3) With the intensification of competition, the possibility of technological upgrading increases. The opening of the domestic market has obviously accelerated, greatly increasing the breadth and depth of competition in the domestic automobile product market. The original "import substitution" products or "secondary assembly point of multinational companies" technology can no longer meet the requirements of the new market competition situation. (4) The domestic service market continues to expand. Foreign service industry will further penetrate into the service market of China automobile industry, fill some gaps in the service field of China, and help meet the demand of production and consumption for services.

The average import tariff rate of information technology products in China is 13.3%. After China's accession to the WTO, it will achieve zero tariff in 2005, and will also lift the market access restrictions that foreign enterprises must transfer technology to China and increase export quotas. Generally speaking, China's information technology industry will be more favorable: it will help improve the export environment and increase the international market share of China's information technology products; It is conducive to reducing the procurement cost of raw materials for domestic enterprises; It is conducive to opening up the development space of China enterprises abroad; The opening and development of telecom service industry will drive the growth of telecom terminal equipment production. High-tech with information technology as the core is the commanding height of all countries in the world. In order to occupy the market of information technology products in China, developed countries will impose stricter technical blockade and control on China. After the restrictions of "technology for market" and "market for market" are lifted, it will be more difficult for China to acquire foreign advanced technology. With the growth of market demand for information technology products in China, the import of overseas products will increase substantially, and the ways of market competition will tend to be diversified. On the other hand, China's information technology industry will be at a disadvantage in the competition, because many core technologies and high technologies of the information technology industry are mostly in the hands of developed countries.

In the bilateral agreement between China and the United States, the China government promised to allow foreign investors to own 49% of the shares in Sino-foreign joint venture telecom service enterprises, which can reach 50% after one year of operation; Allow foreign Internet service providers (ISPs) to invest in China; Foreign companies can participate in satellite communication business in China. The impact of China's entry into WTO on China's telecom service industry can be described as: (1) facing severe challenges. The agreement reached between China and the United States covers a wide range of areas and degrees of openness, and the situation facing the opening and reform of the telecommunications industry will be very severe. In China, foreign telecom capital will use the existing telecom network resources in China to compete with state-owned enterprises in value-added services and mobile services with the highest economic benefits. State-owned enterprises will be at a disadvantage not only in the technology and experience of value-added services, but also in undertaking quasi-government functions such as the construction of fixed communication facilities and "universal services". (2) Promote the reform and restructuring of China's telecommunications industry. In the long run, opening the market to foreign investors will enhance the liquidity of China telecom market. Any price drop brought by the opening-up will benefit consumers, thus stimulating demand more, promoting the capital reorganization of the telecommunications industry, and ultimately benefiting China's telecommunications industry as a whole. (3) The service level will be improved. In the long run, China's accession to the WTO can accelerate the reform of China's telecommunications industry, improve its service level and expand its service scope.