The paper examines whether China fulfilled its reform commitments as set out in the WTO Accession Protocol for China and its appendixes. The paper focuses on investment-related reform commitments (non-discrimination/national treatment, forced technology transfers, intellectual property regime, SOEs and subsidies).
China has been exposed to criticism that the requirements and obligations set out in the WTO protocol have not been fully met. China has faced backlash for the unequal treatment of foreign companies compared to domestic companies, for instance regarding market entry conditions, forced transfers of technology and know-how, the protection of intellectual property rights, the award of contracts in public tender procedures and access to financing. The People’s Republic of China was also accused of strong state intervention and SOE subsidies to enable highly competitive prices in global trade, for example causing dumping prices. Arguably, this public opinion has gained even more traction due to the ongoing US-China trade war, with US-American punitive tariffs on Chinese exports exceeding US$ 500bn by 2020.
Table of contents
1 Introduction
1.1 Problem and Objectives
1.2 Methodology
2 Domestic View: Economic Reform Era
2.1 Reform Developments between 1949 and 1975
2.2 Reform Developments between 1976 and 2000
3 International View: China in the WTO
3.1 WTO at a Glance
3.2 Accession Process
3.3 Accession Protocol and Investment-Related Reform Commitments
4 Compliance Analysis: Fulfillment of WTO Reform Commitments
4.1 Contemporary Legal Framework
4.1.1 New Foreign Investment Law (FIL)
4.1.2 Catalogues of Restricted Industries
4.1.3 Catalogue of Encouraged Industries
4.2 Compliance of Investment-Related Reform Commitments
5 Conclusion and Outlook
Objectives and Research Focus
This term paper examines the extent to which the People's Republic of China has fulfilled its investment-related reform commitments as stipulated in its WTO Accession Protocol. The central research question focuses on how China has adapted its domestic legal framework to align with international standards and whether these changes sufficiently address criticisms regarding market access and non-discrimination.
- Evolution of China's economic policies from 1949 to 2000.
- Mechanisms of the WTO accession process and core reform obligations.
- Implementation of the New Foreign Investment Law (FIL) and its impact on market access.
- Evaluation of China's compliance regarding transparency, subsidies, and intellectual property rights.
Excerpt from the book
3.3 Accession Protocol and Investment-Related Reform Commitments
With more than 900 pages overall, the WTO Accession Protocol for China and its annexes are the longest of their kind. The WTO Accession Protocol for China is divided into Part I (General Provisions), Part II (Schedules) and Part III (Final Provisions), outlining the provisions China has to embrace until given dates.
The WTO Accession Protocol is supplemented by the WPAC Accession Report which contains a comprehensive list of the commitments China agreed to reform. In turn, the WTO Accession Protocol for China and the WPAC Accession Report are supplemented by China's schedule of concessions and commitments on goods (documents WT/ACC/CHN49/Add.1 in conjunction with WT/MIN(01)/3/Add.1) and China's schedule of specific commitments on services (documents WT/ACC/CHN49/Add.2 in conjunction with WT/MIN(01)/3/Add.2).
The commitments can be categorized into investment-related commitments and trade-related commitments. In the WTO Accession Protocol for China itself, many provisions are rather trade-related rather than investment-related, while the WPAC Accession Report also highlights investment-related commitments in greater detail. Taking into account the limited scope and primary research target of this paper, the following illustrations shall focus on selected provisions and commitments that are investment-related.
Summary of Chapters
1 Introduction: This chapter introduces the context of China's WTO accession and outlines the research objectives, methodology, and scope regarding investment-related commitments.
2 Domestic View: Economic Reform Era: The chapter provides a political-economic history of China from 1949 to 2000, focusing on the transition from a planned economy to the opening-up reforms initiated by Deng Xiaoping.
3 International View: China in the WTO: This section details the WTO structure, the accession process for China, and the specific contractual obligations set forth in the Accession Protocol.
4 Compliance Analysis: Fulfillment of WTO Reform Commitments: This core chapter analyzes China's current legal framework, particularly the New Foreign Investment Law, and assesses the degree of compliance regarding investment-related reform requirements.
5 Conclusion and Outlook: The final chapter summarizes the findings regarding China's reform progress and discusses potential future developments for China within the WTO framework.
Keywords
China, WTO, Accession Protocol, Foreign Direct Investment, FDI, New Foreign Investment Law, FIL, Market Access, Non-discrimination, Compliance, Reform commitments, Economic transition, State-owned enterprises, Trade liberalization, Intellectual property.
Frequently Asked Questions
What is the core subject of this paper?
The paper evaluates China's performance in meeting the investment-related reform commitments it agreed to upon joining the World Trade Organization (WTO) in 2001.
What are the primary areas of investigation?
The study focuses on transparency, national treatment, subsidies for state-owned enterprises, foreign exchange regulations, government procurement, and intellectual property rights protection.
What is the central research question?
The research asks to what extent China has successfully implemented its investment-related commitments and aligned its domestic legislation with WTO requirements since its accession.
Which methodology does the author use?
The paper uses a political-economic analysis, examining the evolution of legal frameworks (specifically the New Foreign Investment Law) and comparing them against the "target state" established by the WTO Accession Protocol.
What is the focus of the main body?
The main body traces the historical context of China's economic reforms, details the specific accession obligations, and conducts a compliance analysis of current Chinese laws against these established obligations.
Which keywords define this work?
Key terms include China, WTO, FDI, New Foreign Investment Law (FIL), compliance, market access, and non-discrimination.
How has China's New Foreign Investment Law (FIL) changed the landscape for foreign investors?
The FIL aims to harmonize legal frameworks, providing a more unified approach to investment, though the paper notes that substantial challenges regarding implementation and existing restrictions remain.
What role do "negative lists" play in China's current investment policy?
Negative lists specify sectors where foreign investment is restricted or prohibited; the paper notes that while these lists have been shortened over time, they still serve as a tool for state regulation.
Does the author conclude that China is in full compliance?
No, the author concludes that while significant progress has been made toward liberalization, China has not fully met all stipulated commitments, particularly regarding transparency and equal treatment of foreign market participants.
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- Lukas Lindemann (Autor:in), 2020, China in the World Trade Organization. Fulfillment of Investment-Related Reform Commitments as per WTO Accession Protocol, München, GRIN Verlag, https://www.grin.com/document/889206
