Why does China want to join the World Trade organization?

This course submitted the fulfillment of the requirement for the degree of Bachelor of Arts.

English Department of Shanghai University
詹俊Zhanjun
June 1999

Abstract

Why does china want to join WTO? What benefits can we get from joining WTO?
WTO is a worldwide trading organization, whose precursor is GATT (general agreement of tariff and trade). The WTO system encourages good government and the freer trade in its system will cut the cost of living. It can also bring Chinese consumers more choice and stimulate China's economy grow. If we are the member of WTO and we have trade disputes with other member states, the WTO system allows the disputes to be handled constructively.
Joining WTO is the requirement of China's Open and Reform Policy as well. Joining WTO can promote China's economy system reform and improve Chinese enterprises' competition abilities. It can also help China create an integrated law system.
So no matter what obstacles China will meet on its way to WTO, China never stop his step. China must and should be the member of the World Trade Organization.

What is WTO?

The benefits from WTO
1. The system encourages good government.
2.Freer trade cuts the cost of living.
3. It gives Chinese consumers more choice.
4. Trade stimulates economic growth, and that can be good for full employment.
5. The basic principles make the system economically more efficient, and they cut costs.
6.The WTO system allows disputes to be handled constructively.


The requirements of China's open and reform policy
Since the World War 2, on the basis of mutual benefits the international trade has been developing rapidly, and the multilateral trade system is established to meet the demand of economy globalization.
The open-door policy is China's fundamental policy. The average growth rate of Chinese external trade grows at an average rate of 13% per year, 4% higher than the world level, which is quite surprising. Re-entry to the GATT and joining WTO is the requirement of China's Open and reform Policies.
1. Joining WTO can promote the economy system reform and quicken the establishment of the socialist market economy with Chinese characters.
2. Joining WTO can make Chinese enterprises develop in the international affairs and improve their abilities in the acute competitions.
3.Joining WTO can impulse China to create the law system suitable for the socialist market economy.

Conclusion
As above-mentioned, China must join WTO.
Joining WTO can make us enjoy the most favoured nation treatments, develop the economy and trade cooperation bilaterally or multilaterally, and get more useful information and technology.
Though at present there are some obstacles in China's way to join WTO, China's step to WTO can not be stopped. It is not only to the China's interest but to the interest of the world trade and economy development. Whenever China becomes a member of WTO, China will insist on constructing the socialist market economy and implementing the open and reform policy, creating a world trade with freedom and fairness as well. I am looking forward to such a day.

Reference books:

1. David Robertson
--《East Asia trade after the Uruguay Round》
-- Cambridge University Press -- 1997
2. Rt.Hon.Denzil Davies
--《The world trade organization & GATT'94-a guide to the new
international economic law》
-- Pinner Cartlon-- 1995
3. Claudia Jimenez Cortes
--《GATT,WTO and the Regulation of the International Trade in
Textiles》
-- Ashgate Dartmouth --1997
4. Bernard M. Hoekman & Michel M. Kostecki
--《The Political Economy of the World Trading System from
GATT to WTO》
-- Oxford University Press --1995
4. Ernst-Ulrich Petersmann
--《International trade law & the GATT/WTO dispute settlement
system》
-- London Kluwer Law International --1997