The document outlines the establishment and functions of the Ministry of Commerce (MOFCOM) in China, formed in March 2003 by merging three previous ministries. It discusses responsibilities such as formulating trade policies and managing foreign investment, while providing statistics on foreign direct investment and the growth of Chinese export brands. Additionally, it highlights predictions from the WTO regarding China's rise as a leading exporter by 2010.

1. MOFCOM : Ministry of Commerce By Ari Herzog April 27, 2006 Suffolk University

2. Birth in March 2003 Born to eliminate redundancy MOFTEC (formerly MOFERT) + SETC + SDPC = MOFCOM

3. Departments/offices General Affairs Office Personnel, Education and Labor Department Policy Research Office Law Department Planning and Finance Department Asian Affairs Department Northwest Asian and African Affairs Department Europe Department America and Oceania Department Taiwan, Hong Kong and Macao Office International Economic and Trade Relations Department WTO Department Foreign Trade Department Machinery and Electric Equipment Import and Export Department Scientific Development and Technological Trade Department Market System Department Commerce Reform and Development Department Market Operations Regulation Office Foreign Investment Department External Aid Department External Economic Cooperation Department Import and Export Fair Trade Bureau Industrial Damage Investigation Bureau Information Technology Department Foreign Affairs Department

4. Responsibilities Formulates and coordinates guidelines, laws, policies, regulations, plans, strategies, and administration of domestic and international trade and international economic cooperation foreign investment foreign government loans and assistance programs overseas projects technology trade with foreign countries tariffs, taxation, exchange rates, credit, and pricing economic relations with Taiwan, HK, and Macau

5. Ministers

6. January 2006: FDI in China FDI up 11% in Jan 2006, from Jan 2005 $4.55 billion USD HK, British VI, Germany led investment 15 EU countries grew by 70.8%, US by 19.7% 3,044 new foreign firms set up shop 14.5% decrease

7. Future investments PricewaterhouseCoopers survey of CEOs in Jan 2006 55% to invest in China now through 2009 75% want to win Chinese customers 48% want to decrease labor costs

8. Potential tax rate change Today, domestic firms pay income tax rates of 33%, foreign firms taxed at 15% National People’s Congress to discuss in 2006 to unify the rates. Also, plans for future tax breaks.

9. China support of key export brands 2003: 65% market share for top 10 brands of 80 consumer products 80% market share for top home appliance brands 20% of export enterprises had own brands; < 10% of total exports Lack of IPR in tech firms Source: Hong Kong Trade Development Council website - www.tdctrade.com/alert/cba-e0507a-3.htm

10. 190 domestic export brands fostered in 2005-2006: includes Haier, Gree, Xoceco, Galanz, Jialing, Huawei, ZTE, Ordos and Threegun 71 from mechanical and electrical industry 55 from textile industry 40 from light industry, arts and crafts 10 from food, native produce and animal by-product industry 7 from metals, minerals and chemicals industry 7 from pharmaceutical and health food industry

11. WTO: China #1 exporter by 2011 2005 world trade volume was > $10,000 billion USD, 13% increase over 2004 Largest export increase by Russia (37%), China (28%), and Brazil (23%) Top 3 goods export countries were Germany, US, and China WTO prediction that China would take the place of Germany as the largest goods exporter in 2007 if China maintained 30% export increases WTO prediction that China would be #1 goods exporter by 2010 at latest Source: Network Center of MOFCOM, 4/20/06

12. MOFCOM Online Resources China Commodity Net http://ccne.mofcom.gov.cn/ Allows free searches for info of 600,000 Chinese enterprises and 2.2 million products World Importers Net http://win.mofcom.gov.cn/en/ Free. Promotes intl trade by allowing Chinese and foreign firms to upload pics and descs of products to buy/sell Bizmatching http://bizmatching.mofcom.gov.cn/en/ Invest in China http://www.fdi.gov.cn/main/indexen.htm MOFCOM’s US Commercial Counselor (at Embassy) http://us2.mofcom.gov.cn/