Assessing China’s Compliance with WTO Commitments

Abstract

China joined the World Trade Organization (WTO) over seven years ago. It undertook massive, complex commitments, which have to be accomplished in five and ten years’ phase–in periods. The commitments made in goods and services have by and large been accomplished as per the schedule drawn by the WTO. The accomplishments are closely related to the domestic economic reforms and globalisation of the Chinese economy. As a result of increased market access overseas, its exports increased phenomenally; the imports also increased but still lag behind exports. China’s inflow of foreign direct investment (FDI) swelled. Augmented trade surplus led to increase in foreign exchange reserves. Now, China is also an important investor abroad. A large volume of FDI has gone into the industrial sector, which made China an ‘industrial power house’ of the world. High growth in GDP has not only been sustained over the years, but also further enhanced. WTO membership has brought immense benefits to China, helping it to attain the status of a global economic power.