He said that it is imperative that more measures are taken to promote foreign trade and improve international competitiveness, and it is important to keep a balance between imports and exports. Shi said the export of machinery and electronic products will reach US$160 billion by 2005, accounting for about 50 percent of the total export, and export of high-tech products will be US$60 billion, accounting for about 20 percent.

At the same time, traditional export products will be more value-added and at higher technical level, he said, adding that it is important to seek an even greater development in terms of overseas contracted project, labor cooperation, overseas investment and assistance in the next five years, he said.

Shi said that China will deepen the reform of its foreign trade management system, and manage and supervise foreign trade activities by economic and legal means. Foreign trade enterprises will operate according to market rules, he said. Therefore, China's foreign trade growth will depend on quality and efficiency instead of scale and quantity.

He said that in the next five years, China will establish a new foreign trade system suited to international regulations and its own national conditions, according to its commitment made during negotiations for its entry into the World Trade Organization (WTO).

Shi said that China will be more active in international competition and cooperation, and will encourage the formation of Chinese transnational companies. He said that China will establish a stable and standard export drawback system while improving the financial supporting system focusing on export credit and export credibility insurance.

China will also set up economic and legal systems for business with foreign countries, which will be compliant with WTO rules and its national conditions, Shi said.

Meanwhile, it is essential to establish a supervision, control and early-warning mechanism for importing and exporting important commodities, he said. It is also important to protect domestic industries by taking advantage of WTO rules.

He called for promoting e-commerce in foreign trade, and setting up various kinds of databases related to foreign trade so as to upgrade the management of foreign trade and make Chinese enterprises more competitive in the international market.

Shi said that China will new ways of participating in regional economic cooperation, he said.

(Xinhua 12/26/2000)