The agreement provides that China will adhere to the WTO's Basic Telecommunications Agreement. This marks the first time China has agreed to open its telecommunications sector to direct foreign investment and to implement regulatory policies that foster more competition. This part of the agreement specifies that the Internet will become available at the same rate as other telecommunications services are made available to the Chinese people. Equally encouraging tariffs on computers, semiconductors and other information technology equipment will fall from an average of 13.3 percent to zero by 2005. These changes should result in more Chinese receiving more information through the Internet than ever before.
Information is empowering and transforming.
The agreement contains market-opening concessions by the Chinese in financial services, banking insurance and securities. It will give American companies a greater ability to own their own distribution chains, which is essential if our domestic manufactures are to build and sustain markets in China for their goods. Currently, foreigners may only own distribution networks for goods made in China. But while we will be retaining ownership, we will be recruiting locally, and creating corporate capitalism that will have profound changes on Chinese society. In the professional services, the agreement will allow expanded access in a broad range of areas, including accounting, engineering, management consulting, and law.