STATEMENT BY H.E. AMBASSADOR SUN ZHENYU

ON CHINA’S TRANSITIONAL REVIEW AT THE GENERAL COUNCIL

（18 December, 2007）

Mr. Chairman,

Since its accession to the WTO, China has attached great importance to the transitional reviews regarding the implementation of China’s WTO accession commitments. With a proactive and cooperative attitude, the Chinese government has devoted enormous resources in preparation for these reviews. Each year, some 30 governmental institutions participated in the process. To facilitate the reviews by the 17 WTO bodies within their mandates, China provided relevant information in advance of the review meetings as required by paragraph 18 of China’s Protocol of Accession and gave detailed responses to questions raised by other WTO Members.

Mr. Chairman, China is fully aware of its responsibilities in this organization and has given top priority to the implementation of all China’s WTO accession commitments and has faithfully fulfilled its obligations, resulting in substantial improvement in the level of market access in goods and service sectors and much more transparent and predictable trade regime and policies. China’s average tariff has been reduced to 9.9% from 15.3% in 2001; China has phased out all its non-tariff restrictions on imports that are inconsistent with WTO rules, including relevant import quotas, designated trading and import licenses. Control on trading rights has been removed completely. Out of the total number of 160 service sub-categories specified by WTO, China has made and implemented its commitments in 104 sectors. In addition, China has revised some 3000 pieces of domestic laws and regulations in accordance with WTO rules and promulgated a series of new domestic laws and regulations to fulfill its WTO commitments.

Mr. Chairman, during the past six years, growth of the Chinese economy and trade has remained robust. The GDP growth for this year will be about 11.4%. This would not have been possible without sticking to the policy of reform and opening-up. China’s Membership in the WTO, China’s growing trade worldwide and China’s continued attraction of foreign investment have greatly contributed to the economic growth and the improvement of people’s living standard. This year China’s total trade volume would surpass US$2 trillion mark and the accumulated amount of profit remitted overseas by foreign investors reaching USD 60 billion. According to the statistics of the World Bank, China’s annual contribution to the world economic growth averages 13% since China’s entry into WTO, which equals to USD 75 billion added to the world economy.

Mr. Chairman, China has always been a firm supporter of the multilateral trading system. As is known to all, China’s tariffs on industrial products are bound at the low level of 9%. China’s tariffs on agricultural products are bound at 15.2%, one fourth of the world’s average and lower even than some major developed countries. China abolished all its export subsidies on agricultural products in 1990s and undertook not to provide any export subsidies on agricultural products. The domestic support provided to its agricultural production is also limited since its AMS is zero. In the area of services, China’s commitments to liberalization in some sectors are even higher than some developed Members. The performance by China in its trade regime with regard to agriculture, NAMA and services is a clear demonstration of China’s strong commitment to the multilateral trading system. Meanwhile, China has also made active and constructive efforts to push forward the Doha Development Round for an early conclusion.

Mr. Chairman, it is my belief that the past six years of transitional reviews have greatly facilitated Members’ understanding of China’s trade regime and policies. It has also facilitated China’s implementation of its commitments which lead to further reform and opening of the economy. I would like to take this opportunity to express my sincere thanks to the chairpersons of all relevant WTO bodies as well as the staff of the WTO Secretariat for their work done in the process. We are particularly grateful to the overwhelming majority of Members who have shown their full confidence in and support to China’s reform and opening process and its objective to build a harmonious society and a harmonious world.

Thank you, Mr. Chairman.