Table 1 The Impact of China''s Entry into WTO on the Main Sectors of Manufacturing Industry and the Development Prospect of These Sectors
Category of industry Characteristics of globalization Degree of marketization Degree of market opening Degree of industrial maturity Potential of domestic demand Comparative advantages Impact of WTO accession & medium- and long-term outlook
Food processing and manufacturing 0 ++ + + + 0 In general, the short4erm impact is not tangible. In the medium and long nm, this sector has certain development space and potential competitiveness, but has no visible comparative advantage (the sugar-making industry has a visible comparative disadvantage). This sector has certain characteristics of localization. Local production and sales account for a fairly large proportion and the impact of international trade is not great. As most food manufacturing sectors have high degrees of marketizahon, market opening and industrial maturity (tariff quotas and 70 percent of state-operated trade are preselwed for sugar), the import attack after WTO accession is not severe. After 2004 and 2005, tariff rates will drop significantly for dairy products, butter products and vegetable oils. The import permit and quota management for granulated sugar and fine white sugar are abolished upon WTO accession. Therefore, these sectors will face more severe import attacks.
Beverage making 0(+ ) + + + + + 0 In general, the short-term impact is not tangible. In the medium and long run, this sector has certain development space and potential competitiveness, but has no visible comparative advantage. This sector has strong characteristics of localization (more so for tea, natural spring water, liquor, yellow rice wine) and therefore the impact of international trade is not visible (because of high transport costs and small trade proportions). Most beverage sub-sectors (such as natural spring water and carbonated water) have high degrees of marketization, market opening and industrial maturity and will not face severe import attacks after WTO accession. Domestic market demand is high, but is mainly met by domestic production capacities. Tariff rates will drop significantly as from 2005 for high-grade wine and a few other products, and this will have certain impact on the domestic wine industry.
Tobacco processing 0 - -- 0 0 - In general, the short-term impact is not tangible. But in the medium and long run, this sector has little development space and is in a position of comparative disadvantage. This sector''s trend of globalization is not visible. Due to state monopoly, the degrees of marketization and market opening are not high. The degree of industrial maturity is average. Due to the impact of anti-smoking campaign, the potential of domestic market dem