-1-SHA-4309-90099-06-22-X1.ImpactofWTOentryonconsumerdurableinChina-2-SHA-4309-90099-06-22-XAfterWTOentry,Chinashouldgraduallyopenitsmarket,reducetariff,removenon-tariffbarriersandimproveitsinvestment&tradingenvironmentChina’sresponsibilitiesafterWTOentryMarketaccessRemovenon-tariffbarriersTariffreductionImproveinvestment&tradingenvironment•Averageimporttariffofindustrygoodswillbeloweredfrom24.6%to9.4%•Averagetariffofagricultureproductswillbeloweredfrom31.5%to14.5%•tariffofautowillbeloweredfrom80%~100%to25%till2006,andtariffofautopartsto10%Gradualreductionoftariff•Licenseandquota•bid•enforcementoftechnologytransfer•Foreignexchangebalance•localcontent70barrierswillberemovedimmediatelyafterWTOentry,about300barrierswillberemovedgraduallyin3~5yearsRemovalofallnon-tariffbarriersMoreareasopentoforeigncapital,permissionofmakeaccessandmajorstockownership•Telecommunication•Internet•Distribution,afterservice•Banking,SecuritiesandInsuranceProvidebetterenvironmentforforeigninvestmentandtrading•Protectionofpatents•Judicialinspection•Moretransparencyoflawsandregulation•Fairtreatment-3-SHA-4309-90099-06-22-XWTOentrywillfastenChina’sinternationaltrading&cooperationandeconomicdevelopment,whileatthecostofsomeindustriesInfluenceofWTOentryonChina’seconomy•AccordingtoprojectionfromAmericanInternationalTradeCommittee,China’sexporttoUSwillincreaseby12%•Accordingtoprojection1),China’simport&exporttradingwillrisetoabout600billionUS$•Accordingtoprojection1),till2005,foreigndirectinvestmentinChinawillincreaseto100billionUS$•Openofmarketandincreaseoftradewillsmoothpricedistortion,resourcecanbeallocatedaccordingtocomparativeadvantageamongdifferentcountries,andthuseconomicefficiencywillbestimulated•Accordingtoprojection1),annualGDPgrowthwillincreasebyanother0.5%byWTOentry•Marketopenwillleadtomorefiercecompetition,somelessefficientcompanieswillgobankruptandthuspeoplewillbelaidoff•Somehighlyprotectedandnewlyemergingindustrieswillbeseriouslyimpacted:automobile、distribution、telecom、finance、insurance、Internet,etc.,PromotionofexportIn-flowofforeigncapitalRaiseofefficiencyContributiontoGDPgrowthImpactofindustries1)Resource:GoldmanSachs1999,RolandBergeranalysis-4-SHA-4309-90099-06-22-XDifferentindustrybyprotectionandinternationalizationextentDifferentindustrybyprotectionandinternationalizationextentDifferentindustrieswillbeimpactedtodifferentextent,consumerdurablewillbelessimpactedduetoitslessprotectionbeforeWTOentryPublishinghighlowlowhighlowmiddlehighPharmaceuticaltransportationConsumerdurableagricultureenergyDailyconsumerTextileconstructionTelecomAutofinancedistribution1):Evaluationofprotectionextentofacertainindustryhastwocriteria:oneismarketentrybarrier,theotherisprotectionextentineachlinkofvalue-addedchainofthisindustryinternationalization1)ProtectionextentImpactextentImpactextentConsumerdurableinchinaislessimpactedbyWTOentryConsumerdurableinchinaislessimpactedbyWTOentry•Thehigherprotectionandinternationalizationextentofacertainindustry,thehigherimpactofWTOentrywillbeonthisindustry•Auto,telecom,distributionandfinancewillbethemostseriouslyimpactedbyWTOentrybecausetheseindustriesarehighlyprotectedbygovernmentbefore,andthenatureoftheseindustryarehighlyinternationalized•ConsumerdurablearelessprotectedandlotsofMNCshaveestablishedtheirJVsinchina•Consumerdurab...