China And The WTO
CHINA AND THE W.T.O:
What price membership ?
WHY TALK ABOUT CHINA?
Economy
• 2nd Largest economy of the world after the U.S.
• Largest economy in the world on PPP calculations according to a 2014 estimate from IMF.
• Fastest growing major economy( >10% average in last 30 years)
Trade
• Largest manufacturing economy of the world
• Largest exporter of goods.
• Largest growing consumer market • 2nd Largest importer of goods. • China became the world’s largest trading nation in
2013
A BRIEF OVERVIEW OF CHINA’S
ECONOMIC HISTORY
1978: Mao
Zedong’s
death
• Beginning of China’s economic reforms under leadership of Deng Xiaoping (9.3 average growth rate). Various development programmes
• Household responsibility system
• Township-Village enterprises (TVE’s)
• SOEs (State Owned Enterprises)
1986: China started seeking membership of
GATT.
• Consensus was that state’s role in the economy was far too great. WHY DID CHINA WANT TO JOIN
GAAT/WTO?
• Significant long-term and structural benefits.(1989 sanctions)
• Desire to be an important player on the world stage.
1.
2.
Influence in policy making
Decisions might affect its vital interests without its input.
• External disciplining mechanism to improve efficiency of its industries.
• WTO entry will bring a number of specific economic benefits to China.
1.
2.
Improve market access for Chinese goods to major markets.
To increase FDI.
TERMS CHINA AGREED TO IN ITS WTO
NEGOTIATIONS
• It took almost 15 years of negotiations both multilaterally and bilaterally with each interested WTO member.
• Unprecedented number of changed were made by China ranging from
Foreign Business, Free Trade and improvements in transparency.
REFORMS FACILITATING FOREIGN BUSINESS
Promised to phase in full trading and distribution rights.
Abolish dual pricing.
Foreign companies were to be allowed to hold majority shares in Chinese retailers within two years of accessions and to provide their own retail services within three years of
What price membership ?
WHY TALK ABOUT CHINA?
Economy
• 2nd Largest economy of the world after the U.S.
• Largest economy in the world on PPP calculations according to a 2014 estimate from IMF.
• Fastest growing major economy( >10% average in last 30 years)
Trade
• Largest manufacturing economy of the world
• Largest exporter of goods.
• Largest growing consumer market • 2nd Largest importer of goods. • China became the world’s largest trading nation in
2013
A BRIEF OVERVIEW OF CHINA’S
ECONOMIC HISTORY
1978: Mao
Zedong’s
death
• Beginning of China’s economic reforms under leadership of Deng Xiaoping (9.3 average growth rate). Various development programmes
• Household responsibility system
• Township-Village enterprises (TVE’s)
• SOEs (State Owned Enterprises)
1986: China started seeking membership of
GATT.
• Consensus was that state’s role in the economy was far too great. WHY DID CHINA WANT TO JOIN
GAAT/WTO?
• Significant long-term and structural benefits.(1989 sanctions)
• Desire to be an important player on the world stage.
1.
2.
Influence in policy making
Decisions might affect its vital interests without its input.
• External disciplining mechanism to improve efficiency of its industries.
• WTO entry will bring a number of specific economic benefits to China.
1.
2.
Improve market access for Chinese goods to major markets.
To increase FDI.
TERMS CHINA AGREED TO IN ITS WTO
NEGOTIATIONS
• It took almost 15 years of negotiations both multilaterally and bilaterally with each interested WTO member.
• Unprecedented number of changed were made by China ranging from
Foreign Business, Free Trade and improvements in transparency.
REFORMS FACILITATING FOREIGN BUSINESS
Promised to phase in full trading and distribution rights.
Abolish dual pricing.
Foreign companies were to be allowed to hold majority shares in Chinese retailers within two years of accessions and to provide their own retail services within three years of