Quoting forecasts by authoritative institutions, the article says the world economy is likely to post a growth of less than two percent in 2002, an undeniable mark of depression.

"The global economic depression will dampen imports by many countries, of which the adverse effects on China's exports cannot be underestimated," the article says.

The article called for further deregulation of the foreign trade sector and the diversification of export channels, with priority given to key regions, key enterprises, key commodities and key markets.

The processing trade should not be seeking blind expansion but rather quality growth, and great efforts should be made to improve the country's export processing zones, It says. China must seek new points of growth for its exports, with emphasis put on the export of machinery and electrical products, which accounted for 44 percent of China's exports in 2002 and have been the country's largest category of exports for seven consecutive years.

While support should be extended to domestic enterprises to expand their exports, the article says positive measures should also be adopted to further boost exports by foreign-funded enterprises, which have been an important contributing factor in China's strong export growth over the years.

With the U.S. economy in depression and increasing protectionism in Japan and the European Union, China must seek to diversify its export markets, the article says.

It particularly mentions Russia as a potential new market, saying that its recovering economy and ongoing economic restructuring have offered the right opportunities for expanded China-Russia trade.

The article calls on localities to clean up local laws and policies that are not in line with World Trade Organization rules, and urges resolute actions to end local protectionism and industrial monopolies.

(People’s Daily February 12, 2002)