Trade And Investment Liberalization In China
ERTEKN, Meriç SUBAŞI, and Betül YÜCE DURAL describe that: “The WTO was created on 1 January 1995, replacing the General Agreement on Tariffs and Trade, which had been formed in 1948. The WTO stresses the central role of markets and private enterprise. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. The WTO is the only international agency overseeing the rules of international trade”.(93)
ERTEKN, Meriç SUBAŞI, and Betül YÜCE DURAL also demonstrate that: “After fifteen years of negotiations, China joined the World Trade Organization (WTO) in 2001. This has meant new opportunities, but has also created risks as China increases its integration into the global economy. Trade and investment liberalization under the WTO causes greater competition between Chinese and foreign firms”. (100)
ERTEKN, Meriç SUBAŞI, and Betül YÜCE DURAL says that: “The remarkable economic growth of China has been driven largely by exports and
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China has used the opportunities and skills that foreign direct investment brings. China has also developed productive investment projects linking China to international markets, leading to important transfers of technology. The most prominent contribution of FDI is the expansion of Chinese exports. The export performance of FDI firms from 1980 to 2013 has increased. Chinas FDI policy has been deliberately biased towards export-oriented FDI. However, as a result of this export-oriented strategy, most foreign direct investment has been invested in processing industries, and more than half of Chinese imports are for either processing or re-export purposes”.