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China has undergone five big changes in the two years since it joined the World Trade Organization (WTO) in 2001, according to Shi Guangsheng, executive vice-chairman of the organizing committee for the World Economic Development Declaration Conference.

Shi, the former minister of foreign trade and economic co-operation, said China has made great progress in keeping its promises to the WTO, which has brought sweeping changes to the country.

"The most important change that is happening is the improvement of the country's market economy system," Shi said.

The aim to set up a market economy had been a major driver pushing China to participate in the WTO, Shi said, and, in turn, the entrance has helped China learn more about world economic rules and has strengthened the nation's leaders' and business peoples' awareness of the need to be competitive.

The WTO accession has also improved China's rules and regulations dealing with foreign countries and its administrative efficiency, Shi said.

China has amended its laws and regulations on protection of intellectual property rights, including those governing patents, trademarks and software.

China has also established specific departments to follow closely and point out movements and trends in foreign trade and economics.

Foreign goods have easier access to Chinese markets now that the country has substantially cut its tariffs and non-tariff measures, Shi added.

The averaged tariff rate will be dropped to 10 per cent by next January, from 15.3 per cent in December 2001.

The quotas and licences on some chemical products, motorcycles, automobiles and auto parts and cameras have been cancelled in accordance with China's WTO promises.

China became the world's largest steel importer, purchasing 29.1 million tons of steel last year, while world steel market was at a ebb.

China also set an astounding pace in opening its service sector, Shi noted.

As a result of the wider access, foreign investment in the fields of finance, retailing, telecommunications and tourism increased by 434, 105, 40 and 22 per cent respectively last year.

While abiding by the rules, China now has a say in forming a multilateral trading system, Shi said.

China will play a major role in promoting the establishment of a fair, just and reasonable framework for world economic development, Shi said.

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