On The Regulations Of The State Trading Enterprises And The State Trading Enterprises In Our Country

With the entry into the World Trade Organization of China and the progress of the treaty of the farming department at Dora, the regulations of the state-owned enterprises are arousing more and more concern among the members of WTO. On the one hand, the so-called system-turning countries and countries with the planned economy system are trying to join or have joined WTO, the members began to have the following concerns: whether the disciplines set down by the regulations of the state-owned enterprises can resist the possible impact on the system of WTO from the state trading enterprises which play a very important role in the domestic economy; on the other hand, the important role of the state trading enterprises in the farming field is paid more attention to because of the proceeding of the treaty in the farming department. Under the above situation, the members in WTO began to pay general attention to the principles of the state-owned enterprises.General Agreement On Tariffs And Trade 1994 clearly regulates the principles that all the members must follow when they run the state trading enterprises. In the Uruguay Around, the members reached Understanding On The Interpretation of Article XVII of The General Agreement On Tariffs And Trade 1994, which makes further and specific rules for the principles that all the state trading enterprises must obey. As one of the legal regulations in GATT1994, the regulation of the state trading enterprises is a significant outcome in promoting the liberalization of international trade on a large scale. We should have a good command and deep understanding of the basic contents and principles of the regulations of the state trading enterprises. That is because it can help us have a clear recognition about the challenges and opportunities in front of us in the post transition period on condition that we follow the regulations of the state trading enterprises. Then on the basis of this, we can put forward better countermeasures and suggestions.China became the 143rd member of WTO on February 11, 2001. The government of China has made more detailed promises in the respect of running the state trading enterprises in its own country in The EntryConfirmation Book of the People's Republic of China and The Report of the Joining Work Team of China. In order to fulfill the promises thoroughly and deepen the reform of the foreign trade system, it is quite necessary to make a deep and careful study on the regulations of the state trading enterprises. Beginning with the appearance and implication of the regulations of the state trading enterprises, the paper tries to make a clear illustration on the basic content and principles of the regulations of the state trading enterprises and aims at offering countermeasures and suggestions on managing the state trading enterprises in our country in the post transition period.The title of the paper is On the Regulations of the State Trading Enterprises and the State Trading Enterprises in Our Country, and it includes five chapters.Chapter I introduces the appearance and meaning of the regulations of the state trading enterprises. All the members expect to establish a set of brand new regulations that are based on the characteristics whether the specific products are authorized with the franchise or privilege to engage in the import and export but have nothing to do with the ownership and the constitution of capitals. In order to ensure the realization of the liberalization of international trade, the members are allowed to establish their own systems of state trading enterprises for state trading enterprises in their own country on the condition that the system must accord with the relevant principles of WTO and the promises they have made. On the one hand, it is required that all the members should cancel the examination and approval system of the power to engage in foreign trade step by step; on the other hand, it is not totally prohibited and excluded that the members manage the import and export of some products by means of the state trading. In the process of management, the state trading enterprises may bring about obstacles against the import and export trade. Facing this problem, it is clarified that the state trading enterprises should be on their running according to the rule of nondiscrimination, the rule of transparency and the principle of non-intervention. They are only allowed to purchase and sell within the scope of commerce.Chapter II introduces the basic content of the regulations of the statetrading enterprises. In view of the close relationship between the GATT1994 and Understanding On The Interpretation of Article XVII of The General Agreement On Tariffs And Trade 1994, the chapter illustrates the regulations of the state trading enterprises from the angle of the combination of the two parts. It makes the following issues much clear: the applicable scope and objects of the regulations of the state trading enterprises, the types of the state trading enterprises, the franchise and privilege of the state trading enterprises, and exceptions to the regulations of the state trading enterprises, and so on. The regulations of the state trading enterprises apply to the state trading enterprises and the authorized and privileged enterprises. As for the objects of application, the regulations of the state trading enterprises are only fit for such aspects concerning the selling and purchase in import and export trade of an enterprise.Chapter III puts the emphasis on the introduction to the basic principles that the state trading enterprises must follow. According to the articles in reference to the state trading enterprises regulated by WTO, we must obey the rule of nondiscrimination, the rule of transparency and the principle of non-intervention in order to assure the orderly competence among the state trading enterprises.Chapter IVmakes an all-round introduction to the promises concerning the management of the state trading enterprises made by the Chinese Government when entering WTO from the angle of entry promises. The chapter makes an illustration by a combination with the relevant articles in the newly amended Foreign Trade Law of the People's Republic of China and the entry promises in The Entry Confirmation Book of the People's Republic of China and The Report of the Joining Work Team of China. The Chinese Government promises not to interfere in the commercial decisions made by the state-owned enterprises and the state-investment enterprises either directly or indirectly, including the quantity, quality or state of origin of any sold or purchased goods. However, those that are in accordance with the WTO Agreement are exceptions. The Chinese Government will not impose tasks with policy on the state trading enterprises.Aiming to face the challenges and opportunities successfully that comein front of the Chinese state trading enterprises in the post transition period, Chapter V puts forward some countermeasures against the following aspects by means of combining the promises that our government made on the regulations of the state trading enterprises: how to respond to the new situation that is brought about by the new challenges, how to participate in the formulation and amendment of the international trade rules, how to strengthen the sense of regulations further, how to improve the creative ability and so on. At the same time, it suggests that the state trading enterprises in our country should improve the international competitive capacity on a large scale and the ability to respond to the trade friction.The first three chapters of the paper introduce the appearance, meaning, basic content and basic principles of the regulations of the state trade regulations. With the gradual perfection of the world trade system, the writer consider whether the following actions should be taken: to encourage the members to make promises to one another that the state trading are admitted to the market and can have the national treatment in some specific fields, to introduce the principles of the competitive law to the running fields of the state trading enterprises, to prevent the state trading enterprises from abuse their marketing start, to clarify the concrete meaning of the present disciplines, and to exert the influence of the dispute settlement mechanism actively. The last two chapters clarify the specific promises on entering WTO made by the Chinese Government. The two chapters put foreword the suggestions and countermeasures that are applicable to the regulations of the state trading enterprises from the angle of running the state trading enterprises in our country. The two chapter aim to improve the overall core competitive ability of the state trading enterprises in our country; and it is expected that the state trading enterprises can realize the overall, harmonious and sustainable development by following the regulations of the state trading enterprises. With the rapid development of the foreign trade in our country, China has stepped into the period when the international trade friction frequently happens. With the further opening of the market, the trade frictions will be more and more. The state trading enterprises in our country should accelerate the speed to develop the warning mechanism and the quickreaction mechanism to make a response to the trade friction. We should make full use of the dispute settlement mechanism of WTO, and improve the ability to employ the corresponding regulations. At the same time, we should also maintain the lawful rights and interests of the state trading enterprises in our country by law and by means of following the WTO rules strictly.