China continues to have "enormous impact" on world economy
Updated: 2006-08-13 18:42
LONDON -- China will continue to have an "enormous impact" on the world
economy, said a report published by British parliament on Sunday.
The growth of China's trade provides consumers with cheap goods, and China's
companies are striving to "increase the technological content of their products"
and so the challenge for companies competing in this sector will be very likely
to intensify, said the report entitled "East Asia", which was conducted by the
Foreign Affairs Committee (FAC) of the House of Commons.
"However, foreign investors and traders can profit greatly from these
transformations, provided China adheres to its World Trade Organization
commitments," the report said.
According to the report, the world must take account of the economic changes
occurring in China and cannot simply close the door on Chinese goods, and any
attempts at protectionism would damage attempts to bind Beijing effectively into
the existing international order.
"The preservation of the global multilateral trading structures has become
more important than ever with the emergence of the Chinese economy," said the
report, adding Britain should "maintain its championship of free trade between
the European Union and China, by working with other advocates of free trade
within the EU to support trade with China".
Britain must urge its counterparts in Washington and in the EU not to succumb
to the temptations of protectionism, even in the face of growing trade frictions
such as those over the value of the Chinese currency, said the report.
It is the FAC's seventh report of session 2005-06. The FAC, appointed by the
House of Commons, is responsible for scrutinizing the administration,
expenditure and policy of British Foreign Office and its associated agencies.