Generally believed by many, international trade advances economic growth and internal political changes. Since the 1980s, China has gradually shifted from a closed society based on planned economy and communist authoritarianism to a semi-open socialist society adapted to Chinese conditions. In order to further develop the country, the central government of China has taken steps to join the World Trade Organization, which arranges trade negotiations, establishes trade agreements, and resolves trade conflicts among countries (CHING et al.). The WTO membership since 2001 has improved China’s economy dramatically and pushed for a more open and transparent political government.
To begin with, the journey of becoming a member of the WTO was not easy …show more content…
WTO membership guaranteed that China’s trading partners would eliminate MFA quotas on China. MFA, the Multi Fibre Arrangement, limited the amount of textiles developing countries were allowed to export. The termination of MFA quotas increased the competitiveness of the textile industry in China, contributing greatly to the development of trade (Krumm and Kharas 36). On the other side, since WTO strictly controlled the trading process among member countries, WTO membership presented China as a credible trade partner. As a result, China strengthened trade ties with many developing countries in Africa, such as South Africa, Angola, and Sudan. Besides those developing countries, China also traded a significant amount with the largest economies of the world, including the United States, the United Kingdom, and Japan (Ertekn and Dural). According to statistics from the World Trade Organization, China surpassed the United States to become the largest world trader in 2013, sharing 11.3% in the world total imports and exports. In brief, China’s entry to the WTO allowed China to fully utilize its trading potential in the global …show more content…
Before China’s entry to the WTO, the Chinese government limited trading rights of many products to enter the country. Following China’s WTO accession, the Chinese government authorized the entry of nearly all foreign products into the domestic market (Liu). The Chinese government also proved its predictability with its policy implementation. For the past fifteen years, the Chinese government reduced tariff on imports with little variance, decreasing the probability of tariff increase in the foreseeable future (Krumm and Kharas 38). Evidently, WTO’s emphasis on transparency and predictability promoted policy changes in
To begin with, the journey of becoming a member of the WTO was not easy …show more content…
WTO membership guaranteed that China’s trading partners would eliminate MFA quotas on China. MFA, the Multi Fibre Arrangement, limited the amount of textiles developing countries were allowed to export. The termination of MFA quotas increased the competitiveness of the textile industry in China, contributing greatly to the development of trade (Krumm and Kharas 36). On the other side, since WTO strictly controlled the trading process among member countries, WTO membership presented China as a credible trade partner. As a result, China strengthened trade ties with many developing countries in Africa, such as South Africa, Angola, and Sudan. Besides those developing countries, China also traded a significant amount with the largest economies of the world, including the United States, the United Kingdom, and Japan (Ertekn and Dural). According to statistics from the World Trade Organization, China surpassed the United States to become the largest world trader in 2013, sharing 11.3% in the world total imports and exports. In brief, China’s entry to the WTO allowed China to fully utilize its trading potential in the global …show more content…
Before China’s entry to the WTO, the Chinese government limited trading rights of many products to enter the country. Following China’s WTO accession, the Chinese government authorized the entry of nearly all foreign products into the domestic market (Liu). The Chinese government also proved its predictability with its policy implementation. For the past fifteen years, the Chinese government reduced tariff on imports with little variance, decreasing the probability of tariff increase in the foreseeable future (Krumm and Kharas 38). Evidently, WTO’s emphasis on transparency and predictability promoted policy changes in