China Unbalanced Write-up
International Trade and Development
In 2001 China became a member of the World Trade Organization. China’s accession into this organization had many advantages and disadvantages for the country. Some of the advantages of being a member of the WTO for China was the strong increase in GDP growth rate which the country experienced as a result of the facilitation of trade and the increase in imports/exports. Some of the disadvantages of the membership to the WTO were the negative effects in health care, inequalities in income distribution, and inefficient pension funds.
Prior to 2001 China had a robust economy which was growing at an astonishing rate. When China ascended into the WTO the country reformed the foreign trade policies which were the foundations of the economic success which the country had experienced. As a result of the reforms foreign enterprise was facilitated, there was more transparency of China’s laws, and free trade was promoted. Despite the growth that China experienced prior to 2001, during annual reviews of the country several human rights issues were exposed which could potentially erode the economy. China’s conformation to the standards which the WTO established would facilitate foreign relations and remedy these human rights issues. China’s membership in the WTO eased some of the restrictions on increased foreign trade regulations which made China more attractive to foreign investors. For foreign-invested firm’s distribution, retiling, and franchising had been significantly restricted prior to 2001. Under the WTO China promised full trading and distribution rights for foreign-invested firms. Tariffs were significantly lowered from 31% to less than 14% and China became committed to treating imported goods comparably to domestic goods in trading agreements. Transparency is a basic principal of the WTO and China’s legal system had to inculcate this principal into their...