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One Year after WTO Accession         



Interview: Motorola benefits from China's WTO entry


Motorola Corporate Vice President Pete Shinyeda repeats the word "absolutely" when asked to comment on whether Motorola has benefited from China's membership in the World Trade Organization (WTO).

"Absolutely, absolutely, Motorola has benefited from China's entry into the WTO," Shinyeda said on Monday in an interview.

"Basically the China's economy in the long term will become much more viable, much stronger to a certain extent. If China is successful economically, we benefit as the largest (foreign telecommunications) investor in China," the vice president said on the eve of the first anniversary of China's entry into the WTO.

In the long run the entry would be helpful to Motorola in exporting products, the vice president said, adding that "in the short term it benefits us currently in the local market development."

Shinyeda also said many Chinese companies had a sharp edge in their distribution and market promotion, and Motorola could thus benefit from the cooperation with them.

He said he was very impressed by the "remarkable" progress China had made in its telecommunications development in recent years, noting that he was very optimistic about the prospects of the sector despite the recession worldwide.

Recent years have witnessed the robust expansion of China's mobile telecommunications industry. The number of mobile phone users reached 196 million by the end of October while Gou Zhongwen, vice minister of the Information Industry, estimated on Monday the figure had exceeded 200 million.

Shinyeda said more than two billion cell phones would be produced over the next four years worldwide, stressing that the full potential of wireless communications market in China was yet to be exploited.

Motorola entered China in 1987. Chris Galvin, chairman of Motorola, announced last September that Motorola's investment in the Chinese mainland would hit 10 billion US dollars by 2006.

Shinyeda said Motorola would continue to invest in the Chinese market because "China has very good investment environment." More importantly, over 15 percent of Motorola's income came from the Chinese market.

"This is a big, big number," he said, "It is a sizable financial benefit we enjoy." Shinyeda said the success could be attributed to the 15 years of investment in China and good business relationships.

Because of the optimism in the Chinese market, Shinyeda said he visited China every three to four months. This time he was attending a forum for chief executives of wireless communications companies co-organized by an office under the Ministry of the Information Industry and Motorola.

Shinyeda said the forum itself was a strong signal to Motorola's customers: "we want to stay in China."

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