The Fourth Trade Policy Review of China June 12 & 14, 2012
Statement by the Republic of Korea
Thank you, Mr. Chairman.
(Introduction)
First of all, we would like to extend our warmest welcome to the Chinese delegation led by Assistant Minister YU Jianhua to Geneva for the fourth trade policy review of China. We would also like to thank Ambassador Smidt of Denmark for his insightful comments as a discussant and the Secretariat for its usual comprehensive and informative report.
Mr. Chairman, we find this TPR meaningful and significant as it provides Korea and other WTO Members with a good opportunity to better understand where the Chinese economy stands and is headed, particularly in light of the recent tenth anniversary of China’s accession to this organization. An old Korean saying goes that “In ten years, even mountains and rivers change.”
Indeed, the past decade has seen a sea change not only in the Chinese economy, but also in the global economic and trade landscape. In 2001, China was the world’s sixth largest trading nation. At present, it is the second largest. During this period, China’s exports rose nearly six times,
China’s remarkable economic trajectory bears witness to the fact that China’s WTO accession and its subsequent economic reforms and liberalization have not only benefitted the Chinese economy, but have also made important contributions to the development of the multilateral trading system and the growth of the global economy. We share the high expectations that China, as a key player in the WTO, will continue to play a meaningful role in the evolution of the global economy.
(Bilateral Economic Relations)
Mr. Chairman, we are pleased to note that China and Korea continue to enjoy one of the most robust and prosperous periods of our bilateral history.
China is currently Korea’s largest trading partner, while Korea stands as China’s fourth largest trading partner. Bilateral merchandise trade reached over 220 billion US dollars in 2011. In a summit meeting held in Beijing last month, our two leaders agreed to work together to expand the bilateral trade volume to 300 billion US dollars earlier than the previous target year of 2015.
Korean investors have thus far invested over 51.7 billion US dollars in some 45,000 cases, making China the second largest destination for Korean investment abroad. Investment in Korea by Chinese investors cumulatively amounts to 3.8 billion US dollars.
It is against this backdrop that the trade ministers of our two countries announced the launch of the Korea-China FTA negotiations last month.
We very much hope and expect that the timely conclusion of the FTA negotiations will help deepen the Strategic Cooperative Partnership between the two countries. We hope that the initiative will also play its due part in helping advance trade liberalization as it will aim to achieve a comprehensive and high-quality trade deal while fully respecting WTO standards.
(China’s Economic Performance)
Mr. Chairman, turning to China’s overall economic performance, it is worth noting that China has maintained rapid growth during the period under review. It is particularly encouraging as China has posted strong economic growth despite the ongoing global economic and financial difficulties, thanks to a good mix of substantial fiscal stimulus and accommodative monetary policy.
Having said that, we also think that it would be both necessary and desirable to pay heed to the various economic imbalances and challenges that China would need to address, as has been repeatedly identified in the Secretariat reports for both the previous and present review periods. We would appreciate it if the Chinese delegation could provide further explanations and insights regarding such observations as well as the specific policy directions the Chinese government is pursuing to address
(China’s Trade Policies and Practices)
Mr. Chairman, as far as China's trade policies and practices are concerned, we would like to recognize and applaud China's continued efforts to make them more transparent and predictable. We hope that China will stay the course on its economic reforms and continue to open up its economy including through raising the level of overall liberalization, as highlighted in the Twelfth Five-Year Economic and Social Development Plan released last year.
We also take due note of China's trade and investment policy directions as put forward in the Plan, such as keeping its trade in balance through expanding imports and encouraging its domestic enterprises to invest more actively in foreign countries. These policies are expected to facilitate China's efforts to recalibrate its economic development paradigm so that China can better respond to the challenges and opportunities arising in this rapidly changing environment, while helping achieve a balance in international trade as well.
Equally noteworthy are China's strenuous efforts to expand its trade in services as they will help improve the overall trade structure of China, which has been dependent primarily on the trade in manufactured goods, and, as a result, create new opportunities for China to expand trade with its trading partners including Korea.
Having said that, Mr. Chairman, let us turn to some of the issues that are of particular interest to us concerning China's trade policy.
First of all, we do appreciate China's genuine efforts to continue to improve its legal and institutional framework aimed at helping better protect IPRs. Nevertheless, there are calls for the Chinese government to do more to strengthen the enforcement of relevant laws with a view to substantially enhancing IPR protection. We expect and trust that the Chinese government will reflect such calls in a timely and appropriate manner as it works to strengthen IPR protection.
Second, we hope that, as China continues to open up its services market, broader market access opportunities will be offered in the foreseeable future in sectors such as finance and construction. Without doubt, broader market access would go hand in hand with equal treatment between foreign and local companies and greater transparency in licensing procedures.
Lastly, Korea shares the view that it is important to achieve tangible progress in the ongoing negotiations regarding China’s accession to the GPA. Korea will work closely with other GPA Members and, particularly, China to make that happen.
(Conclusion)
Mr. Chairman, we are encouraged by the closing comments in the Chinese government’s report that it will participate actively in global economic governance and regional economic cooperation, while opposing protectionism in all forms, and promoting the development of a balanced, inclusive and mutually beneficial multilateral trading system.
Welcoming this policy direction, we very much hope that China, as a key player in the WTO, will continue to play an important role in helping not only strengthen the WTO multilateral trading system as a whole, but also advance the DDA negotiations.
We would like to conclude by expressing our appreciation to the Chinese delegation and the Secretariat for their hard work in preparing for today’s meeting, and we wish the Chinese delegation a successful TPR.
Thank you, Mr. Chairman.
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