This paper gives an analysis of China’s entry process into the WTO and an assessment on China’s accession commitment. The most important aspect of China’s performance and implementation is then analysed. The paper researches the impact that the WTO membership has brought to China and the world. The impact on rule of law is researched and the impact on trade growth as well as employment are analysed.
Table of Contents
I. Introduction
II. China’s Entry into the WTO: A High, but Good Price?
1. Preparation Phase (1978-1986)
2. Negotiations to China’s WTO Accession
2.1. Market Economy Status
2.2. Developing Country Status
3. Assessment of China’s WTO Commitments
4. Summary
III. Implementation and Participation: Has China been a Reliable Member?
1. General Points on Compliance and Participation
2. Special Aspects of China’s WTO Participation and Implementation
2.1. China and TRIPS
2.2. China and Agreement on Textiles and Trade
2.3. China and Anti-Dumping
2.4. China and Technical Barriers to Trade
2.5. China and Regional Trade Agreements
3. Summary
IV. The Impact of China’s WTO Membership on China and the World
1 Impact on China
1.1. Impact on the Rule of Law
1.2. Impact on National Industries
1.2.1. The Automobile Industry
1.2.2. The Banking Sector
2. Impact on Developed Countries with the Example of the U.S.
3. Impact on Developing Countries with the Example of India
4. Summary
V. Conclusions and Future Outlook
Objectives and Themes
This paper examines China’s complex journey into the World Trade Organization (WTO), focusing on the arduous negotiation process, the subsequent implementation of trade commitments, and the wide-ranging economic consequences for China, developed nations, and developing countries. It addresses the central research question of whether China has evolved into a reliable member and how its integration has reshaped the global trading landscape.
- Analysis of China's 15-year accession process and the resulting "WTO-Plus" obligations.
- Evaluation of China's compliance with trade rules, specifically concerning intellectual property, textiles, and anti-dumping measures.
- Examination of the "soft" impact of WTO membership on China's internal legal framework and industrial policies.
- Comparative study of the effects of China's rise on developed economies, using the U.S. as a case study, and on developing economies, highlighting the case of India.
Excerpt from the Book
1.1. Impact on the Rule of Law
According to the GAO, the WTO accession document requires that the rule of law be improved in China. At least 60 commitments in China’s WTO accession commitments require China to enact, repeal, or modify trade-related laws or regulations, including areas such as agricultural tariff-rate quotas, export and import regulation, technical barriers to trade, intellectual property rights, and non-discrimination.
Some scholars predict fundamental and comprehensive impacts of WTO to China’s development of rule of Law. Potter (2001) predicts that China might have to delete or amend the permission of control from Chinese Communist Party in its legal system stated in its Constitution in order to meet the transparency and rule of law requirements as well as the national treatment requirements of the WTO. He also argues that the word “socialism” in the Constitution may be required to be deleted or amended because “this term implies or authorizes Party control over the operation of the legal system as it affects trade and investment activities that are subject to GATT principles.” Transparency principal also might require “possibly the removal of Party committees and Party-led Adjudication Committees from judicial decision making – in practice as well as in formality.”
However, Clarke (2006) believes that “WTO membership by itself – as distinct from ongoing economic reforms of which WTO accession was a part – will have a relatively modest effect on the domestic legal system.” He argues that “WTO agreement does not mandate a perfect legal system, or even a basically fair one, outside of a few specific areas.” Although the TRIPS Agreement requires fair judicial proceedings for IPR protection, but it states at the same time the conditions by which this obligation could be exempted (Compare also III.2.1 “China and TRIPS”). The GATT and GATS state also only limited obligation in terms of transparency.
Summary of Chapters
I. Introduction: This chapter introduces China’s 2001 WTO accession, highlighting its rapid transformation into a major trading power and the subsequent questions regarding its adherence to obligations and the global impact of its integration.
II. China’s Entry into the WTO: A High, but Good Price?: This section reviews the historical path of China's accession, focusing on the critical negotiations regarding market economy status, developing country status, and the demanding "WTO-Plus" commitments.
III. Implementation and Participation: Has China been a Reliable Member?: This chapter analyzes China’s actual track record in fulfilling its WTO commitments, examining specific fields like IPR protection, textile trade, anti-dumping actions, technical barriers, and regional trade initiatives.
IV. The Impact of China’s WTO Membership on China and the World: This part assesses the real-world consequences of accession, covering the development of the rule of law in China, the growth of the automobile and banking sectors, and the distinct economic impacts on the U.S. and India.
V. Conclusions and Future Outlook: The final chapter synthesizes the findings, arguing that while the price of accession was high, it served as a vital catalyst for China's market-oriented reforms and suggests a collaborative rather than confrontational future approach.
Keywords
China, World Trade Organization, WTO, Trade Liberalization, Accession Protocol, Intellectual Property Rights, TRIPS, Anti-Dumping, Textile Trade, Automobile Industry, Banking Sector, Rule of Law, Foreign Direct Investment, Regional Trade Agreements, Economic Reform.
Frequently Asked Questions
What is the core subject of this work?
The work provides a critical analysis of China's accession to the World Trade Organization, exploring the entry negotiations, the degree of compliance with commitments, and the broader economic impacts of China's integration into the global trading system.
What are the primary thematic fields covered?
The analysis spans political and economic aspects of the accession process, compliance in specific sectors such as IPR and textiles, the evolution of China's internal legal landscape, and the comparative economic effects on developed and developing nations.
What is the primary objective of this study?
The objective is to evaluate whether China has acted as a reliable WTO member and to determine the impact that WTO membership has had on both China's internal development and the international community.
Which scientific methods are employed?
The research relies on an extensive analysis of WTO accession documents, trade statistics, academic literature, and existing reports from organizations like the U.S.-China Business Council and various research institutes to perform a comparative and qualitative assessment.
What is addressed in the main body of the text?
The main body investigates the transition from a planned to a market-oriented economy, evaluates China's implementation of specific trade agreements, assesses the impact on national industries like automotive and banking, and compares economic consequences across different trading partner groups.
Which keywords define this work?
Key terms include China, WTO, Trade Liberalization, IPR, Anti-Dumping, Automobile Industry, Banking Sector, and Rule of Law.
How does the author evaluate the "WTO-Plus" obligations?
The author views these China-specific clauses as exceptionally demanding and sometimes discriminatory, noting that they challenge the WTO's core principle of non-discrimination while serving as a catalyst for China's internal legal and economic transformation.
What is the conclusion regarding China's banking sector reforms?
The study concludes that the opening of the banking sector has been a "win-win" scenario rather than a "zero sum game," as domestic banks have leveraged their branch networks to maintain market share while using the pressure of competition to accelerate necessary governance and structural reforms.
- Quote paper
- Junzhai Ma (Author), 2007, China and the WTO - A Critical Analysis, Munich, GRIN Verlag, https://www.grin.com/document/202683
