Technology trade and commodity trade and service trade together constitute three forms of China's foreign trade.

                 Section I: Technology Trade

 

In 2003, the registered technology import contracts in China added up to 7130, rising 15.30% as compared with the same period of last year; the contractual value amounted to 13.451 billion US dollars, dropping 22.83% over the same period of last year; of which technology fees reached 9.511 billion US dollars, making up 70.71% of the total contractual value, dropping 12% over the same period of last year.

 In 2003, countries and regions from which China imported technologies amounted to 62 in all, of which there were 18 from Asia, 2 from Africa, 28 from Europe, 8 from Latin America, 3 from North America and 3 from Oceania. Technology import is still focused on Asia, Europe and North America, accounting for 43.69%, 29.01% and 24.86% respectively.

 In 2003, in the fields of electronics and communications equipment manufacturing industry, China had technology import contracts registered amounting to 997 in all, rising 17.71% as compared with the same period of last year; the contractual value reached 3.411 billion yuan, falling 64.63% over the same period of last year, but such fields are still the most concentrated fields for China's technology import, with its contractual amount making up 25.35% of the total amount for technology import.

 In 2003, the registered technology imports by foreign-invested enterprises arrived at 4313, making up 60.49% of the total technology imports, with the contractual amount reaching 7.607 billion US dollars, accounting for 56.55% of the total technology imports and dropping 38.87% over the same period of last year. Technology imports in 2003 remained roughly unbiased with the same period of last year in case of the influence of the contracts under import license control for foreign-invested enterprises to be ruled out.

 In 2003, the export amount of China's high-tech products reached 110.32 billion US dollars, making up 25.2% of the total export amount of the country, rising 62.6% over the same period of last year and rising 28% higher than the whole country's exports, which contributed much to bringing about China's export growth.

 Export of computer and communications technology products and electronic technology products grew drastically. Statistics show that computer communications technology products are high-tech products with the biggest export amount in China. During 2002 and 2003, export of China's computer products and communications technology products grew 50.6% and 68.65 respectively over the same period of last year; proportions of export in export of high-tech products were all over 80%. Electronic technology products, being as the second largest high-tech export products of China, maintained a higher growing speed in its export. During 2002 and 2003, export of such products grew 42.3% and 44.3% respectively; accounting for approx. 10% of the total export value for high-tech products.

 The United States, the European Union and the east Asia are the major markets for China's high-tech products. In 2003, export of China's high-tech products to US and the European Union grew 705 and 100% respectively over last year, export value to the two markets accounted for 44.5% of the total export value for high-tech products, rising 5% as compared to the same period of the previous year. In 2003, export of China's high-tech products to Hong Kong, Taiwan Province, Japan, South Korea and ASEAN countries ( or regions ) grew 46.4% over the same period of last year, accounting for 46.5% of the total export value of the high-tech products.

 The high-tech products exported by means of improvement trade accounted by nearly 90%; the foreign-invested enterprises are still the main force in the export of high-tech products. In 2003, China's export of high-tech products by way of improvement trade amounted to 99 billion US dollars, rising 63.3% over last year and accounting for 89.8% of the total export value for high-tech products. Export of high-tech products by foreign-invested enterprises amounted to 94.3 billion US dollars, rising 69.3% as compared to the same period of last year and accounting for 85.5% of the total export value for high-tech products; export of high-tech products by state-owned enterprises amounted to 11.5 billion US dollars, rising 11.3% and making up 10.4%; the privately-operated enterprises showed a drastic increase in its export, with an export of 2.5 billion US dollars and growing 3.2 times.

 

 

According to the statistics of the World Trade Organization, in 2003, the annual growth rate of the global service trade volume registered a new height since 1995. The export of the service trade before price adjustment amounted to 1763 billion US dollars, growing 12% as compared to the same period of last year. With the rapid development of the global trade and under the forceful growth of China's merchandise trade, by overcoming the effect of such unfavorable factors as the SARS epidemic, China's service trade continually maintains a momentum of rapid development. In 2003, the total import and export value of China's service trade topped 100 billion US dollars for the first time, reaching 102 billion US dollars, thus becoming the ninth biggest country of service trade all over the globe and standing among the top ten in the world. Of which export ( or income )of the service trade reached 46.7 billion US dollars, rising 18% as compared to the same period of last year and accounting for 2.7% of the total global export of service trade, becoming the biggest developing country in terms of the export of service trade and ranking the ninth place among the service trade exporters in the world; import ( or payment ) of service trade reached 55.3 billion US dollars, rising 19% as compared to the same period of last year and accounting for 3.2% of the global import of service trade. China is still the biggest developing country in terms of import of service trade and ranking the eighth place among the importers of service trade in the world.

Of which, tourism, other commercial services and transportation items are the main sources of income for China's service trade, with export being 17.4 billion US dollars, 15.1 billion US dollars and 7.9 billion US dollars respectively and accounting for 37%, 325 and 17% respectively of the total export of the service trade. Financial service, computer and information service, other commercial services and insurance service scored the greatest increase in income, growing 198%, 73%, 72% and 50% respectively as compared to the same period of last year , which reflected that the course of opening those services to the outside world is accelerating.

In 2003, China's import of service trade continued to increase, reaching 55.3 billion US dollars. Transportation and tourism were still the main import items in China's service trade, accounting for 33% and 27% of the total import of the service trade. Since 1997, in 2003, payment for transportation exceeded that for tourism for the very first time, becoming the biggest payment item in China's service trade. Payment for transportation grew 34%, amounting to 18.2 billion US dollars and is the most fundamental reason for the further expansion of China's payment for service trade.

At present, in comparison with the opening course of the primary and secondary
industries, the liberalization level of China's service trade is still low. According to its commitments for the accession to WTO, China is opening more and more fields to the outside world step by step.

 

(1) Value-added telecommunications and paging business: Territorial restrictions will be lifted within 2 years upon China's entry into WTO, with the proportion of foreign fund at no more than 50%.

(2) Infrastructural telecommunications: Territorial restrictions will be lifted in mobile and statistical services within 5 years upon China's entry into WTO, in other services within 6 years, with the proportion of foreign fund at no more than 49%. All international telecommunication transactions must be conducted through the import-export bureaus authorized by the departments in charge of China's telecommunications.

 

Upon its entry into WTO, China will permit foreign-funded banks to provide foreign-exchange services to all their Chinese clients; within 5 years upon its entry, China will permit foreign-funded banks to provide RMB services to all their Chinese clients all over the country on a step-by-step basis. Foreign-funded monetary organizations other than banks will be permitted to provide auto consumer credit.

 

Upon its entry into WTO, China will authorize the establishment of life insurance joint ventures with foreign fund at a proportion of less than 50%; within 2 years upon the entry, exclusively foreign-funded non-life insurance companies will be authorized; within 3 years, territorial restrictions will be lifted: within 4 years, enforced reinsurance will be cancelled; within 5 years, exclusively foreign-funded insurance broker companies will be authorized.

 

Upon its entry into WTO, China will authorize the establishment of securities investment management joint ventures, with foreign fund permitted to reach a proportion of 49% within 3 years. Jointly-funded securities companies will be authorized within 3 years upon the entry, with the proportion of foreign fund at no more than 33%; the companies are permitted to undertake the sales of Stock A, while the sales of Stock B and Stock H as well as government and company bonds must be issued in the form of trading fund.

 

On the condition that China's right to censoring the contents of audio-visual products should be respected, joint ventures will be authorized to undertake the distribution of audio-visual products except movies and the leasing of video-tapes. Each year, 20 foreign movies are allowed to be imported in the form of separate bills. Foreign businessmen will be allowed to construct and/or renovate cinemas, but the proportion of foreign fund should not exceed 49%.

 

Within 3 years upon its entry into WTO, China will cancel the restrictions in terms of territory, stock right and quantity on foreign investment in commission agency, wholesale business (except for salt and tobacco) and retail business (except for tobacco), as well as all restrictions on foreign investment in franchised business; within 5 years, all restrictions will be lifted on foreign investment in distribution. However, foreign stock-holding will be forbidden where the number of chain stores that handle more than one providers commodities of various types and brands exceed 30 and where the sales of grain, cotton, vegetable oil, sugar, books, newspapers, magazines, medicine, pesticide, farming membrane, finished oil, fertilizer, etc., are involved.