4. What kinds of benefits continue to be expected with China's recent accession to the WTO?
Over the past 20 years, China has experienced tremendous economic expansion. This expansion has been fueled by vigorous reforms in government policy resulting in growth rates averaging nearly 10% annually. With such expansion, an array of new jobs and investment opportunities has been created in China. The effect of China's transformation from an inward looking, planned economy to a more market oriented, trading country has greatly affected the global economy, influencing such things as consumer choice and investment location.
In many respects, WTO membership is China's best option for sustaining its economic growth and reform. Reforms are expected to act as a catalyst for the domestic economy, as well as encourage foreign direct investment. In the long term, it is expected to have an effect on judicial reform, regulatory reform, privatization and the labor markets. It is hopeful that WTO membership will also increase the export market and provide access to advanced technology. Needless to say, WTO entry will continue to improve China's trade potential.
As a member of WTO, China will be able to participate in the formulation of rules that govern international trade and investment. It will also be able to defend its trade interests using WTO's dispute-settlement system. Chinese exporters can be certain that trading partners will obey WTO rules.
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Last updated on August 27, 2005
