In a historic move toward complying with World Trade Organization (WTO) rules and regulations, China's foreign joint-ventures were granted the freedom to buy from international vendors, removing domestic purchasing restrictions.

If all goes well, China hopes to join the WTO by late in 2001 or early 2002.

At a conference hosted by the Australian National University, the director-general of the WTO, Mike Moore, said he is "confident" China will gain membership this year. Mr. Moore said China's entry into the WTO will be an important historical event.

The WTO has been encouraged that China's politicians have been acting and instituting policies which move strongly toward complying with WTO member regulations. He also noted that China will need to be allowed time to adjust to WTO rules and regulations.

Domestic suppliers in China have been feeling the pressure as the country moves to remove layers of trade protectionism and isolationism in compliance with WTO rules.

"The outlook for domestic suppliers could be bleak if they act slowly to sharpen their competitive edge," said Wang Shile, a Senior Researcher at the Chinese Academy of International Trade and Economic Cooperation. He noted that the impact may be lessened somewhat by import quotas and other WTO-compliant trade restrictions that make it impossible for businesses to immediately start importing products.

The Draft Outline of China's 10th Five Year Plan (2001-2005) gives foreign-funded businesses the same treatment as domestic businesses. It also gives every company the same market access and removes all ownership restrictions on joint ventures. The only businesses which will remain protected are those the state deems critical to national and economic security.