After China's entry into WTO, she will face many challenges. However the most challenging thing is the talents, because talents decide all. The development of the economy and society mainly relies on human resources. So in this case, from one point of view, entrysintosthe WTO actually is an examination for the qualifications of government personnel and all kinds of talents in our country. But actually the resource that China is in shortest is the talents. How would different sections and fields in China resolve this problem?

　　China’s entrysintosthe WTO will push further the formation of an open-door environment to the outside world in all directions, multiple levels and wider fields, and it will deeply influence economic development. It also accords with our country’s long term and fundamental interests. But after our entrysintosthe WTO, we should also have sufficient estimation of the challenges. The development of the economy and society mainly relies on human resources. As the central government’s economic conference pointed out, the resource in shortest supply in China is human resources; if we cannot resolve this problem, continued modernization will be seriously hampered and we will not be able to deal with the more open environment of our new situation. So in this case, from one point of view, entrysintosthe WTO actually is an examination for the qualifications of government personnel and all kinds of talents in our country.

　　The strategy of talents are very important. It is related to the economic and social development as a whole strategy for our country, and it is fundamental, long term and micro. It represents a kind of concept, general thinking and guidance, and it is also concrete target requirement and careful planning index, and there is also a series of government support in politics. The workout of the talents strategy shows that the government pays great attention to the construction of talent resources. The strategy of talents as a concept and common concern not only shows the will of the Party, and but also shows the will of the whole nation. We should say, the talents strategy, as the state strategy, it is the important orientation for the acceleration of the economy in the new century. It is also the basic task for the human

Mr. Zhang Xuezhong, Minister of China State Ministry of Personnel

　　To execute the strategy of talents, we must firmly build up the new concepts, which accord with the epoch.

　　To execute the talents strategy, we must also change our concepts. The concepts have the fundamental, advanced and foresighted specialty. The thinking decides the way out, while concepts control actions. We believe the concept is very important.“The difference of concepts can be thousand miles away”-- that means a small difference in concepts can bring a big difference in practice. So, facing access to the WTO, we must first of all enter the WTO from our thinking, facing the new situation. We must build up new concepts which accord with the requirements of the epoch.

　　First of all, we must build up the concept of human resources being the first resource. During the era of an agriculture-based economy, development mainly depends on land resources. Whoever has the land resources will be able to develop. In the industrial era, development mainly relies on financial capital. Whoever has the capital and the shares will get the production line and will be able to develop. Entering the epoch of the knowledge economy, high and new technology industries develop very fast. The rate of concentrated technology and concentrated intelligence industries is increasing sharply. The amount and the quality of talent has become the key factor for economic and social development, and human resources has become the most active and most important factor. Whoever holds the senior and new technical personnel will be able to develop. We observe the present world, with talent like Bill Gates, it is possible to create the famous brand name of Microsoft, and it is possible to guide the world software industry for bigger development. With talents like Yuan Longping, it is possible to use genetic engineering to develop hybrid rice, so rice is improved, and it brings increased benefits. But its not only in high and new technology that needs reform -- traditional industries need it as well. The present traditional industry is different when comparing it to the past, it is the traditional industry in the epoch of high and new technology, we use the high and new technology to reform the traditional industry, and we can achieve the development of productivity with big leap forward. Tianjin Pharmaceutical Company mastered the technology of producing Disaimisong (a kind of western medicine), and drove away the French Luosu company from the Chinese market, and at the same time, they occupied the South Asian market. Tianjin Tianlishi Company used to be a Chinese herbal medicine plant and their production was not so good. But after introducing foreign scholars, they were able to produce the Fufang Danshen Diwan Pill, and they exported the product to the European and the American market. These facts show, with the talents who have mastered high technology, you can make a great leap forward in economic development. More than 10 years ago, many places in China still use very old telephones with rotary dialing, but with the improvement of information technology, mobile phones and computers are now used for telecommunications. This is also an example of development with a big leap forward. It is impossible to realize all these without talents equipped with creative knowledge. Knowledge industrialization and industry with knowledge is the characteristics of our epoch. From this point of view, from Mr. Deng Xiaoping’s theory of science being the first productivity to Mr. Jiang Zemin’s talent resources being the first resource, it earmarked the deeper development of Marxist productivity theory. With the development of the knowledge economy, talents as the carriers of knowledge, its functions have been the engine to lead the development of the world economy and society, and it plays a more and more important role. So we have to build the concept that human resources is the first resource.

　　Second, we have to build up the concept of the exploitation of human resources. Our country has a big potential for talents, but the key is the exploitation if we want to exchange potential resourcessintospractical advantage insgroupsto meet the demands of economic and social development and to change itsintosthe production element to push the economic development. In the epoch of economic globalization, facing the development of a knowledge economy, to strengthen the exploitation has become a key problem related to the development of all countries, and all countries in the world have made human resources exploitation the key point of their economic development strategy, and put thatsintosthe general planning of the economic and social development. Mr. Schulz, used to be named as the father of human resources theory, is a famous American economist. He said the most profitable investment is the investment in human resources, and it can get the best investment return. In modern history, a big number of facts of the world economic development shows, the quality of human resources is the most important resource of economic development. Israel has only 280,000 square kilometers (Chinese total land area is 343 times of this country), and a population of 5.6 million. Its natural condition is very bad, and they are short of capital, but in recent years, this country has made a big leap forward towards being a developed country -- the key reason is they pay great attention to the training of human resources. The percentage of people with higher education is highest in the world. For every 1000 laborers, there are 77 university graduates. And among every 10,000 people, there are 140 scientists and technicians. So the human resources rate is not formed by a big number of population, we must firmly build up our concept of exploiting human resources. We must spend a lot of energy on the exploitation, and we have to work out related policies, and to encourage all people and organizations in the society to invest in human resources, to have multi-channel investment and to increase the benefits of human resources insgroupsto push the development of the economy and society.

　　Thirdly, we have to build up the concept of human resources being market oriented. The information of the demand of human resources is very sensitive in the market. All kinds of talents can choose their jobs in the vast space to show their ability. The market is the weather forecast of the demand and supply of talents, whichever kind of people in urgent need, such talents will be in urgent demand, and the price for them will be higher, and the education and training organizations will adjust their training plan according to the market, but on the contrary, if the number of certain kinds of talents is more than the demand, the price for them will be lower, and the scale of training shall be decreased. That is to say we have to adjust the demand and supply of talents according to the market, and this is the law of value. The main body of the human resources market is talents and organizations that need talents, but not the government. Only through the market can we arrange talents to the most suitable place, to the placeswheresthey can create value,swheresthey can achieve higher efficiency. We want to push talent and the organizations that need talent to enter the market through deep reforms and effective measures to achieve the best combination between talent and capital, projects and production elements. Only in this way can we fully display the intelligence of talents to avoid a waste of talents. At present we have the problem ofshavingsmore than enough talent on one hand and less than we need on the other hand. That is caused by inefficient market arrangement. We must firmly build up the concept of the arrangement of human resources, and break up the concept that the organization or the department owns the talents. Considering the development of the market economy and the new situation after entrysintosthe WTO, we have to accelerate the development of the human resources market to perfect the service function of the human resources market, to promote the flow of talents to achieve the common enjoyment of resources insgroupsto realize the basic function of the market in the arrangement of talents.

　　Forth, we have to build up the legal concept for the management of human resources. Whether it is the reform of the officials’personnel system or building the socialist market economy, we have to increase the working level of the legal talents system after the entrysintosthe WTO. The key is the mechanism, only in case the mechanism is formed, can we increase vitality, and the vitality depends on the mechanism, and the mechanism depends on regulations. Further, from the point of view of market arrangement, the operation of the market must follow principles to achieve standard operation. Without regulation, the market will become disorderly, and the market orientation will not realize. So, we have to further perfect legal systems for human resources, and to increase the unification and transparency of the market, and to improve the concept and ability of applying administrative and international rules.

　　Fifth, we have to build up the international concept of talent competition. There is no boundary for human resources in the production elements. All countries in the world can use tariff and non-tariff measures to protect products and industries of his country, and to control the production elements to flow in the world market, but no one can control the flow of talents and intelligence. As the economy is developing globally, the flow of talents appears to be the competitive situation that you have my staff and I have your staff. For example, China’s Haier Company is using a number of foreign talents in many fields, while foreign company Motorola is using localized talents. The globalization of the economy promoted an internationalized talent flow, and it increases the quality and speed of human resources exploitation, and it requires higher for the exploitation work of talents. The president of America’s General Electric Company, Jack Welch, pointed out in the world forum of“Fortune”magazine that globalization has different steps, but what we are facing and participating in is the challenge of talents. Those companies who spend most of the cost are the international companies who try all their best to find good talents. Only in case your talents are globalized, then you can realize your company’s globalization. So we must have the open mind to face the world and to work out related strategies to utilize well the both domestic and international talent market and resources insgroupsto offer better service to the reform and economic construction.

　　To execute the strategy of talents, we have to build up in full scale the construction of human resources team.

　　To build up a big and high-level talents team is the basic task for the execution of talents strategy, and it is the key for the winning of initiative in the competition for human resources after the entrysintosthe WTO at present and in the future. Facing the fast development of the knowledge economy, the outstanding high technology and the new status after the entrysintosthe WTO, we urgently need to improve the

qualifications of existing talents, and to accelerate the training and introduction of all kinds of talents convenient for the new situation. We especially have to take effective measures to train as soon as possible a large number of high tech personnel who know foreign language and international matters very well, international financial and trading personnel, multi-national management personnel, industrial and commercial management and senior administrative management personnel.

　　First of all, we take the senior personnel in urgent need as the key, and accelerate the construction of professional technical personnel. We will fully use the functional advantage of personnel department, apply effective training and attraction method to strengthen the construction of professional personnel. We must develop with great efforts a post doctorate research team. All universities, scientific research institutions and big enterprises who are now training senior personnel in urgent need, in case they have good condition and they can guarantee the quality, have to build up stations if they have not done so. If they have already set up stations, they have to expand their admission rate. We have to reform the flow station for the post doctorate for scientific research, as for the approval of the stations, its formalities must be simplified, and to cancel the limit of index for the admission of post doctorate for the cases managed with the self-raised fund. We have to improve the management method for expert training. For the selection of personnel of thousand talents engineering project in the new epoch, and the training of experts with government subsidies, and outstanding young men who have made great contributions, it must be done in connection with the urgently needed personnel. We must break the social position and ownership restrictions, and to seek the new thinking and new methods for the training of senior talents of non-state-owned organizations. And we have to speed up the construction of the database of talents of the country and provinces. Third, we have to strengthen the introduction of talents especially the high level talents. We have to take the opportunity that many Chinese students studying abroad have the intention to come back to China to build up their own enterprises, we have to take all necessary measures to encourage and attract students who are studying abroad to come back to China to build up their own enterprises. Forth, we have to strengthen the construction of the talent team in the countryside in connection with the adjustment of agricultural industrialization structure and the requirement of increasing the farmers’incomes. We have to train and develop“3 high”agriculture, agricultural products transfer personnel and to develop local farmers’personnel. Fifth, we have to strengthen continuous education work. In combination with the development of modern science, to work out the plan for the continuous education of professional technicians, to build up the continuous education network system with clear responsibility, with all levels of responsibility management system and share of resources. We have to expand the channels for investment of continuous education to promote the formation of multi-elements of state, collective, private and foreign capital investment, and to seek the concrete method for the continuous education according to the law of the market.

　　Second, take the entrysintosthe WTO as an opportunity, and increase fully the management ability of public personnel according to law, the management regulations of the government must be stipulated by the public personnel, and government actions must rely on public personnel for operation, so in one work the challenge of WTO is the challenge of the ability and qualifications of public personnel. According to the present status, our public personnel still know little about the World Trade Organization and world trade rules, and we still cannot meet the demand of the public personnel with miscellaneous abilities who know the laws of the market economy and the World Trade Organization rules. So we must take the training of public personnel as the most urgent business to do, and to make efforts to improve their administrative ability to follow the law, to reinforce their concept for service, and to increase their administrative management level. First of all we have to popularize the training of all public personnel in basic world-trade knowledge, and for the special department, we must carry out important training. Through this training, they can learn and master the basic rule of the market economy and the basic regulations of the world trade organization, and they can improve their ability in following and dealing with the international practices. Secondly we have to deepen the administrative training for the execution of laws, so that most public personnel, especially those working for economic departments and law execution departments, can build up their concept of strictly following the limit, process and legal principles of the law for actions, insgroupsto improve the transfer of the government functions to that which meet the demand of the market economy, and to increase the administrative ability of the public personnel in following the law which is in the access of the development of market economy and international practices. Thirdly we have to actively start the education of (MPA) master of public administration to increase the professional administrative management ability of public personnel. At the same time, we have to strengthen the training of foreign language, computers for the public personnel to increase their miscellaneous qualifications.

　　To execute the talents strategy, we must continuously push the construction of personnel system

　　Facing entrysintosthe WTO, systems are key. The question of systems is basic, full ranged, stable and long-term, and the background of the competition for talents is actually the competition of systems and rules. We must take reform as the key, and continuously push the creation of systems and rules for personnel. After entrysintosthe WTO, the reform and open policy of our country will enter a new and high stage, and this requires the highest demand for the improvement of personnel management system.

　　First, we must perfect the public personnel system. First of all we have to perfect the system of competition position for public personnel. And we have to do very well the work for management, supervision and guidance for position with qualifications, and to increase the scientific function and effectiveness of competition for positions with examinations. Second we have to perfect the system for the selection and choice of personnel. On the basis of admittance by examinations, we have to expand our sight for the selection and choice of personnel, we have to further break the rule of position and geographic restrictions to expand the proportion of the management people from the enterprises or government organizations to be public personnel to absorb more outstanding talents to join the public personnel team. For the personnel of high level profession in the field of finance, tax, monetary, information technology, etc, we can also select them from the students studying abroad with priority. Thirdly, we can explore the possibility of building up the public examination system before the authorization, the forecast system for examination, trial employment system, partial position employment system, talking system and temporary out-of-position training system. Forth, we have to regulate the examination system for the public personnel. We have to build up the examination index system with the working achievements as the key, and to push for the class and grade examinations, to perfect the effective practice of combining examination result, employment, training, promotion, salary increases, year-end bonuses, etc. Fifth, we have to build up the classified management system and make related research. According to the specialty of the different positions and conditions, we can explore a new road for the classified management, and seek the management method suitable for different kinds of personnel and their characteristics.

　　Second, we have to deepen the reform of the income system, that means to strengthen the competition and encouragement mechanism. That is the requirement for the execution of talents strategy, it is also the reaction to the challenge of the entrysintosthe WTO, and it can effectively arouse the initiative of personnel. We have to carry out the principle of distribution according to labor and production elements, and we have to explore the form and concrete method for distribution on the basis of production elements. We have to deepen the understanding of the theory of labor and labor value, and we have to conduct research and to stipulate the related policies and measures for the science and technology, management and labor to participate in the distribution.

　　Thirdly, we have to strengthen the guidance for the reform of the enterprise personnel system. We have to follow the requirement for the reform of the labor and distribution system and for the deepening of enterprise internal personnel matters. We have to strengthen the guidance of the reform of the state owned enterprise personnel system, to reinforce the vitality of the enterprise personnel work, and to better attract and use outstanding talents. In cooperation with other related departments, we have to stipulate the guidance for the employment, examination and training of management people and professional technicians for the state owned enterprises, insgroupsto make the personnel management of the enterprises in a scientific way and with right systems. We have to actively train and manage well the market of enterprise management personnel, to increase the reliability on the market of human resources for the state owned enterprises, to care about the demand of the enterprises, to sum up and promote the working experience of enterprise personnel and to offer service for the personnel and human resources for enterprises actively.

　　In general, facing the blueprint of the personnel and talents work in the new epoch, the state will work from the strategic point of view to keep talents with feelings, keep talents with the cause and benefit, to create a good environment for the selection, training and using of talents. We have to participate in the competition of international talents, we have to make efforts to create conditions to attract overseas personnel and intelligence to participate the construction of our country. The development of China cannot be achieved without the world, and the development of the world needs also China’s participation. To look backsintosthe history, every country, under the condition of equal existence of opportunity and challenge for modernization, is facing the progress of following the law of modernization to realize the modernization target. We must be able to use the advantage and to avoid the disadvantage, to grasp the opportunity of history insgroupsto promote our development. Facing the new situation of the entrysintosthe WTO, for the work of personnel and talents, we have to following strictly the arrangement of the central party and state council to unify our thinking, improve our understanding, accelerate the reform and work hard, and to guarantee to offer qualified personnel for the development of the economy and society after the entrysintosthe WTO.