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The admission of china into the world trade organization

Tuesday, 11 December, 2001, 08: China's formal membership comes exactly one month after the 142 members of the World Trade Organisation ratified its application at the world trade talks in Doha in the Gulf state of Qatar, and the Chinese government formally approved the deal.

  1. Accession meant that China would engage in global competition according to rules that it did not make.
  2. An event of historic proportions for the world trading system Kofi Annan, UN Secretary General China hopes its membership of the WTO, the body that sets the rules for world trade, will ensure that its reformed and market-oriented economic system continues to flourish.
  3. Western companies will be free to set up joint ventures, even in sensitive areas like mobile phones, insurance and banking. The problem is particularly intense in the light of the global slowdown, which is affecting electronics production throughout South-east Asia.

This is a historic moment in China's reform and opening-up and the process of modernisation People's Daily Chinese newspaper But it comes after a long set of negotiations in which China has had to satisfy its trading partners, notably the United States and the European Union, that it is doing enough to open its economy to international competition.

The key turning point came in November 1999, when the United States and China signed a trade deal that was narrowly endorsed by the US Congress.

WORLD TRADE ORGANIZATION

An event of historic proportions for the world trading system Kofi Annan, UN Secretary General China hopes its membership of the WTO, the body that sets the rules for world trade, will ensure that its reformed and market-oriented economic system continues to flourish.

China has already threatened to use its powers as a WTO member in a trade dispute with Japan over the export of shiitake mushrooms. The restrictions on its capital markets will eventually have to be lifted and market access for foreign goods and firms will be improved. China's vast state-owned industries will have to reform, and that could lead to a huge rise in unemployment.

Make informed decisions with the FT.

In a report,on Tuesday, the Chinese government admitted that parts of its economy were "in chaos", with rampant corruption, counterfeiting, fraud and embezzlement. To deal with this new world, China has opted to lift restrictions on the movement of people dating from the days of Communist central planning.

Western companies will be free to set up joint ventures, even in sensitive areas like mobile phones, insurance and banking. But the accession should ensure that foreign investment continues to flood into China, acting as a spur for economic growth.

China and the World Trade Organization

And it could make China even more competitive as an exporter to industrialised countries. It is already overtaking Japan as the largest exporter to the United States. Meanwhile, consumers in China are hoping for greater access to Western goods for their as-yet non-convertible currency.

Triumph at Doha China's formal membership of the WTO was the top headline in all the country's main newspapers.

Many papers carried surveys stressing that consumers are hoping it will bring them new choices in everything from cheaper imported cars to more Hollywoold movies in their cinemas. In November, trade ministers at the WTO summit unanimously approved the accession of the world's largest country into membership. Loud applause and hugs between the Chinese delegation and the head of the WTO, Mike Moore, greeted the decision in the glittering conference hall in Doha, Qatar, where trade ministers were meeting to launch a new trade round.

  1. Conditions[ edit ] These changes were difficult steps for China and conflicted with its prior economic strategy. The key turning point came in November 1999, when the United States and China signed a trade deal that was narrowly endorsed by the US Congress.
  2. Triumph at Doha China's formal membership of the WTO was the top headline in all the country's main newspapers. Conditions[ edit ] These changes were difficult steps for China and conflicted with its prior economic strategy.
  3. United States role[ edit ] The United States acted as a dominant power in the international economy and strongly supported an open system.
  4. China aimed to be included as a WTO founding member which would validate it as a world economic power but this attempt was thwarted because United States , European countries, and Japan requested that China first reform various tariff policies, including tariff reductions, open markets and industrial policies. Competitive threat Some other Asian countries fear China may take away export markets as it expands its trade.

But China put the WTO on notice that a trade round could only succeed if it addressed the gap between rich and poor nations, and ensured that all countries would gain from globalisation, as it staked its claim to lead the group of developing countries. Chinese Trade Minister Shi Guangsheng said his country supported a new round of trade negotiations "on the basis of full consideration of the interests and reasonable requests of developing countries. Competitive threat Some other Asian countries fear China may take away export markets as it expands its trade.

The problem is particularly intense in the light of the global slowdown, which is affecting electronics production throughout South-east Asia. Long Yongtu, China chief WTO negotiator Industrial countries, who have negotiated a wide range of deals opening Chinese markets in agriculture, telecoms and financial services, are hoping that China will live up to its commitments. Earlier this month he visited Beijing again as part of a trade delegation. China insists it will meet its obligations.