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On February 9, Chen Deming, Min- ister of Commerce received an interview from the journalists of Bloomberg, in which he answered the problems related with “mandatory technology transfer”.
One: China will not take technology transfer as the precondition for market admittance
When asked about whether the foreign companies are forced to transfer its technologies to its Chinese partner to get the approval of investing in China, Chen Deming said that China had already made a thorough review of the economic laws and regulations related with foreign investors when it joined in the WTO and changed all the regulations not matching the WTO’s rules and the promise it made. The mandatory requirements about the technology transfer were deleted. During the interview, Chen Deming stressed that the Chinese government would not change the policy about reform and opening up and was to further encourage the foreign companies to invest in China. “The technology transfer and technologybased cooperation are the self-motivated behaviors of enterprises. The Chinese government will not require the foreign companies to conduct technology transfer before giving them the approval to invest in China.”
Two: enhancing mutual cooperation between states is good for boosting Sino-U.S. economic and trade union
When asked why China improved the trade and investment cooperation with the major cities of different states in the United States and whether China held a more open attitude to the investment from the U.S. states, Chen Deming said that the good economic cooperation between China and the United States tallied with the fundamental interest of two countries’ people. It is an opinion widely held and believed by economists, entrepreneurs and government officials of the two countries. “By now, the two countries have seen the establishment of 38 pairs of sister states/provinces and 176 pairs of sister cities. These provinces/ states and cities are expanding their cooperation in trade, investment, energy, environment and culture,” Chen Deming said.
Chen Deming said that the world was still exposed to the threat from the worsening international financial crisis and every country had to face the tasks of boosting economic growth and creating more job opportunities. The improving economic and trade cooperation between states/ provinces and cities of China and the United States, which is based on mutual interest and desire, is good for both China and the United States– the local governments of different places of these two countries. “It is worthwhile to mention that China has already become one of the Top 3 export markets for 29 out of the 50 states in the United Sates and 45 of the 50 U.S. states saw their exports volume to China increase from 2007 to 2010. Among them, Vermont, Oregon, Montana and other seven states saw their exports to China double in that period,” said Chen Deming. In addition, the U.S. states have set up over 30 insttituions of promoting investment and trade in China. Last year, the Ministry of Commerce especially set up the “American Pavilion” in the China Export Commodities Fair – the largest trade fair in China– and invited local governments and companies of the U.S. states to set up exhibition booths and display the products, which were actively answered by the United States.
In Chen’s opinion, the enhancement of co- operation between American and Chinese states/ provinces or cities are an important foundation for consolidating the Sino-U.S. friendship. It also serves as an important force behind the improving Sino-U.S. trade and economic cooperation. China hopes to achieve win-win situation which is good for the Chinese and American people.
Three: more measures to be taken to keep stable growth of foreign trade
During his visit in Guangzhou after the Chinese Spring Festival, Chinese premier Wen Jiabao said that the government should take more encouraging policies than restrictive policies when changes are needed for the policies about export and import. When asked about what detailed measures China would take to keep the stable growth of import and export, Chen Deming at first confirmed that the foreign trade of China indeed went through a slow growing pace from the second half of 2011 and the situation did not turn good in January due to the Chinese Spring Festival and other factors. The export-oriented companies, especially those in small or tiny size, have bigger stress of operation. “The foreign trade is an important part of the national economy and is closely related with people’s livelihood and employment. Premier Wen said that the government would take various measures to help enterprises solve their problems and keep the stable growth of foreign trade.”
Chen pointed out that the imports and ex- ports policies should be generally stable at first. For example, the policy of imports tax rebate should not be changed but the promotion of this policy should be accelerated; the foreign exchange rate of RMB should be maintained at a steady level and the policy about processing foreign trade is not to be changed. For micro enterprises, as Chen stated, the trials about the operating tax reform should be sped up to improve the tax-reduction policy and system. A workable credit examination system for small enterprises should be set up, based on the qualified commercial banks are allowed and encouraged to provide loans for these small and micro enterprises. These small and micro enterprises having the will and ability to go public should be given support and have access to legal channels of raising capital.
“On top of that, the government should take more measures to promote the trade, especially the development of ecommerce, special market, domestic and overseas exhibition centers and marketing networks. These trade fairs having got certain names and influence in the world should be continued while more influential trade fairs are under planning and preparation.”
Chen Deming also added that the Chinese government would increase the import as well to boost the trade balance. The measures include the deletion of unreasonable limitation over import, the enhancement of the convenient of import and the formulation of financial policies of facilitating and supporting import.