Li, also a vice-chairman of the Financial and Economic Committee of the National People's Congress (NPC), made the remark at the "Chinese Lawyer Millennium Conference", which open November 18 in Beijing.

With China's impending accession to the WTO, laws and lawsuits in the post-WTO era have become the major concern of the 110,000 Chinese lawyers as well as a heatedly-debated issue at the conference.

Li pointed out that although some people admit the long-term benefits of the WTO entry, they declare that all trades in China except textiles will face an uphill battle.

However, he said, "they should realize that China's entry into the WTO will ultimately promote the reform in all trades and the change in the government's functions. The reform is vital for all undertakings in China, including the Chinese Bar."

According to the economist, Chinese law firms have developed from merely state-run agencies 20 years ago to joint firms, cooperative firms and state-funded firms. Despite the major changes, the Chinese law firm system needs to be further reformed to meet the new situation and challenges, he said.

Li suggested new types of law firms be established to solve the funding problem, individuals be allowed to set up private law firms, and the modern corporate system be introduced to form large and competitive large law firms.

After China enters the WTO, Chinese law firms will be meeting increasingly fierce competition from their overseas counterparts, he said, pointing out that only reform and innovation can attract more personnel and investment into the trade.

Li called on Chinese solicitors to pay great attention to medium-sized and small businesses, private businesses, venture capital companies and corporate self-discipline organizations, which are major factors closely related to China's future economic development as well as the Chinese Bar.

Based on his investigations and research, Li put forward some proposals, which run as follows:

-- As medium-sized and small businesses lack adequate support from the state, they often are inferior in the market competition and try to shun lawsuits. Therefore, law aid centers aimed at them should be set up to sharpen their competition edge.

-- Private businesses in China, more often than not, are family enterprises. Individualism and nepotism cripple their further expansion. Solicitors should hold the responsibility to help them establish the modern enterprise system to realize the separation of ownership from management.

-- Industrial upgrading is a precondition for the post-WTO development and technological progress is that for the upgrading, while venture capital plays a vital role in developing new technologies. A lot of problems will arise during the process, and Chinese lawyers should be well prepared for participation in handling them actively.

-- The establishment and improvement of corporate self-discipline organizations, such as the board of directors and supervisors, is important for the smooth operation of modern enterprises. Apart from accountants, lawyers play the most important role in the organizations. This will provide new arena for Chinese lawyers.

Li concluded his presentation by saying that he is very optimistic about China's entry into the WTO and he believes that this will benefit China's social and economic undertakings not only in the long run, but also in the short term.

The advantages of China's WTO entry outweigh the disadvantages, he added.

(People’s Daily 11/18/2000)