Sunday, April 17, 2011


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Currently, the World Trade Orginisation (WTO) is in the process of negotiating the issue of The People’s Republic of China’s accession into WTO as a member. China’s accession would expect to see flow of advantages to China as well as the rest of the world.

China would undertake legal obligations to provide most favored nations (MFN) treatment to goods and services for all WTO members, to treat imported and domestically produced goods equally, abolish quotas and preserve intellectual property rights. Investors would also enjoy better surety of low tariff rates and is rest assured that it would not change in the short run. As more people are willing to invest in that country, China would be expected to have a wider selection of goods and services. Following the lowering of trade barriers (e.g. tariffs), the citizens of China would also have the chance to acquire goods, bith domestically produced and imported, at lesser cost and thus, allowing them to purchase more for their money.

New opportunities would emerge for businesses as China has agreed to fully open its door in the service sector. Among the area where foreign firms would have increased opportunities are financial services, telecommunications and distribution (e.g. wholesaling, retailing). The possibilities to export to and invest in China would increase substantially with the reduction of tariff and non-tariff barriers. Elimination of quota restrictions upon China such as the restrictions under the Multi-Fiber Arrangement would enable China to freely compete in the United States market with other textile and apparel producers.

China would also experience a more stable trade relation with other countries who are also members of the WTO because each member will have to abide to WTO rules and cannot alter any rules whenever they please. As investors gain confidence in its capacity to form and implement decisions in accordance with international guidelines, China’s access to foreign capital markets would also be expected to improve.

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Granting China accession to the WTO would not only benefit the world trading community but also China citizens, who still suffer from abject poverty. The standard of living of the people would be raised and there would be a general spread of individual rights, as human rights is one of the issue the WTO stresses on its members. The would also enjoy increased access to information and communication from around the globe. Internal economic development would be enhanced and the use of modern technologies would be encouraged.

China’s accession into the WTO would also strengthen the rule of law within China and also reaffirm its commitment to economic reforms. China, as a member of WTO, would also be subjected to multilateral disputes settlement processes that is deemed more effective than sanctions imposed unilaterally by countries such as the U.S.

In conclusion, among the few advantages that is expected to rise from the accession are increased protection of individual rights, increase international trade on a global scale with the opening up of China market, economic reforms and increased standard of living.


1. John J. Wild, Kenneth L. Wild, Jerry C.Y. Han, 000, International Business An Integrated Approach, New Jersey Prentice Hall.

. Jun Ma, Zhi Wang, (001), “Winners and losers of Chinas WTO entry”, The China Business Review; Washington, March/April 001.

. Shaoguang Wang, (000), “The social and political implications of Chinas WTO membership”, Journal of Contemporary China; Princeton, November 000.

4. Greg Mastel, (000), “China and the World Trade Organization Moving forward without sliding backward”, Law and Policy in International Business; Washington, Spring 000.

5. World Trade Organisation, http//, accessed 1 August 001.

6. China Online, “No one pays retail income tax anymore”, 10 August 001, http//, accessed 1 August 001.

7. China Online, “China unveils restructuring ahead of WTO entry”, 7 August 001, http//, accessed 1 August 001.

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