China’s WTO Membership Benefits China’s Economic Growth
代写英语硕士论文，中国入世后中国经济增长的好处
摘要：经过13年的努力，在新世纪的第一年，中国加入世界贸易组织作为正式成员，具有重大历史意义的过程中，中国的现代化建设。是一个重要的事件，标志着中国对外开放进入了一个新的阶段，经济的发展也将有新的突破。作为世界上最大的发展中国家，中国有一个庞大的市场，人口1300000000，其可能的发展潜力，蕴含着无限商机将在中国加入世贸组织，这必将成为关注的焦点在全球经济事件。面对这些机遇和挑战，中国应该有一个清醒的头脑，发展自己的优势，避免其缺点。只有了解这些问题，融入世界真的可以在世界经济中立于不败之地。
Abstract: After a 13 years’ efforts, in the first year of the new century, China had joined into the WTO as a formal member, which is of great historical significance in the process of China's modernization drive. As is an important event which signifies that China's opening to the outside world has entered a new stage and economic development will also be a new breakthrough. As the world's largest developing country, China having a huge market of a population of 1.3 billion, its possible developmental potential and contain unlimited business opportunities will result in China's accession to the WTO, which is bound to become the focus of attention in global economic events. Faced with these challenges and opportunities, china should have a clear mind of developing its own advantages and avoiding its disadvantages. Only understand these issues, the integration into the world can really be true in the world economy in an invincible position.
Keywords: China WTO Economy Opportunity Challenges
1. Introduction
As one of the results of the Uruguay Round negotiations, the WTO (World Trade Organization) was established in January 1, 1995. It replaced the GATT (Article of GATT) and become the legal basis and a permanent institution of the world's multilateral trade system. It provides a principled and contractual standard for governments to determine how to construct and carry out the domestic trade legislation and rules. It is also the Forum of collective debate, negotiation and judgment to promote inter-country trade relations.
On November 12, 2001, after experiencing15 years of arduous negotiations, China has finally become one of the official members in World Trade Organization (WTO). Today, the world economy is close to each other with an unprecedented combination of speed, the trend of the integration of the world economy, globalization and internationalization has become more evident. With this trend of development, the international economic and trade environment our country facing has undergone tremendous changes. Today in the increasing integration of the world economy, no country can possibly be divorced from the world economic system, the accession to the WTO is the need of China's economic development but also economic development of the world, it will strategically create more good external conditions and the environment for the future of China's economic development, and further deepening reform, expanding opening up and promoting China's socialist modernization drive. The impact of China's accession to the WTO is all-round, multi-faceted. Not only China's economy will have a far-reaching impact, but it will certainly be far-reaching implications on China's social and political system. Accession to the WTO will create a favorable international environment for China's economic development and penning. The impact of China's accession to the WTO is dynamic, long-term, and developmental. How to deal with this impact will be a great test on Chinese government addressing the problem.
2. Favorable factors for economic development of China's accession to the WTO
2.1 Beneficial to further expand exports
After joining the WTO, China has enjoyed members of MFN status, not only to enjoy the benefits of opening up markets in other countries and regions so that the major trading countries of the phase out of discriminatory practices to china, but will also gain more favorable competitive conditions than in the past our products, so as to promote China's out trade in particular the development of export industries which has comparative advantages.
It can further stimulate aggregate demand, increase national income growth and increase new jobs, and becoming a new economic growth "engine." As China's advantage in labor-intensive export products would promote the level of the wages of departmental managers, technical personnel and workers so that the level of wage of the whole community will be raised, and it is helpful to realize living comfortably as soon as possible.
2.2 Beneficial to further attracting large amounts of foreign funds
After joining the WTO, China has been fulfilling obligations under WTO rules to gradually open up the domestic market to further improve the environment for foreign investment, and to enhance more attracts to foreign investors of our market, which are helpful to bring in more foreign capital, technology and management experience. China was originally owned by a market with tremendous potential, fewer restrictions and more opening, as is a hot concern of global investment market, China is bound to attract more foreign capital influx. By then it will become a very favorable conditions borrowing foreign capital and technology to rapid development of the national economy. Foreign investment growth of banking, construction, real estate, and other aspects will also drive china a lot of developments in the field of economy. After accession to the WTO, China's tertiary industry is promoted to develop rapidly. the development of the tertiary industry in developed countries often occupies a large proportion of the national economy. After China's WTO entry, the tertiary industry can be led to the standardized development. it may bring to our best job possibility and the benefits are very difficult immeasurable in short-term. As The influx of foreign capital, the Chinese government will also focus on development of the western region by collecting more domestic financial and material resources.
With WTO entry, China's investment environment continues to improve, China's absorption of foreign investment amount will rise rapidly, and 10 in the 1990s china has attracted foreign investment about 250 billion US dollars, per year from 1996 to 2001 foreign capital actually utilized more than 40 billion US dollars. According to statistics, in 2005 it has reached about 100 billion US dollars and above. Foreign investment in China's economy has been occupies an important position in China's total of all industrial assets. Introduction of foreign investment is also favorable settlement of the issue on China's domestic enterprises and insufficient investment in poor investment returns. China's vast market and only 5% of the US-Japanese labor costs, the demands of mass production and global market are very favorable, transnational corporations invested heavily, making China a global manufacturing base as the world's No. 8 export power, which contribute more than half of foreign-invested enterprises, and has greater high-value-added, exports of high-tech content contribution to investment by transnational corporations having gradually become rational, there will be changes in the structure of foreign capital. Supporting growth in investment and other capital-intensive high-tech industries and the service industry will increase direct investment. to begin engaging in research and development activities, will speed up the domestic industrial structure towards the direction of comparative advantage adjustment which greatly changed changing China's economic structure. Rational allocation of resources will inevitably bring about efficiency improvements, the average annual GDP growth rate of China's accession to WTO will not increase from 0.5 to 1.0 percentage points. In 2005 after the completion of the commitments of the WTO, real GDP increased 199.5 billion Yuan, accounting for 1.5% of GDP that year, so China's overall national strength will be greatly improved.
According to the World Economic and Cooperation Development (CECD), China's current actual use of foreign direct investment over the United Kingdom, and France ranked second in the world. The organization latest statistics show that in the past 20 years, China attracted 300 billion US dollars of foreign direct investment, accounting for 30% of all developing countries in China attracting foreign direct investment, while accession to the WTO will enable China to more and better use of foreign investment in order to accelerate China's economic development.
2.3 Beneficial to promoting China's industrial structural adjustment and optimizing the allocation of resources
The adjustment and optimization of industrial structure is an important and urgent task in China's economic development. joining the WTO, creats a favorable international environment for the implementation of this strategic task. With the other WTO members opening up the market to china and china can oversupply goods and some of China's transfer to the industry through our opening to on the other members. China can use foreign funds and technology to revamp our traditional industries and accelerate the development of high-tech industries and services, and improve the overall development of Chinese industry level.
Accession to the WTO, commitments of market opening and removing protection, appear adversely on national resources products industry, but taking the long view, it is conducive to China's rational use of global resources. China's accession to the WTO, it has also accepted principles of free trade and free market of the WTO. The international community will directly compete with domestic industries cross our various products original tariff barriers and trade protection policy. Then, backward technology on the part of industry must face out or become a vassal of the threat of transnational corporations. The pursuit of coexistence and making use of China's accession to the WTO becomes an inevitable choice foster domestic industries. China's WTO accession will bring about the optimization and reorganization of the domestic industrial structure. During this period, China's industries are likely to withdraw some parts of the market, china might give up a backward industries. However china should identify strengths and concentrate on the development of main industry with Chinese characteristics, instead, China can place on the forefront of the world by Blazing out a way of socio-economy.
To adapt to the new economic situation, and further speed up the socialist market economic system, reform and development of tends to improve, a better economy with the international market and have become self-improvement to enhance the international competitiveness to promote and reflect with outside help, will be China's economic reform, a shortcut. access to the WTO will also promote China's readjustment of the industrial structure. China’s advantage of huge labor market, the effectiveness of low agricultural production and the lack of sufficient international competitiveness, the face of international competition make china to promote the "accession to the WTO, China will be from agricultural country to manufacture industrial countries" leapfrog development. There is long-term significance. And when integrated with the international economy, the building of laws and regulations and related to intellectual property rights and other areas, w3hich are imperatively correspondingly adjusted and perfected. By joining the WTO, other member countries opening their markets to china, we can use the opportunities provided by international economic restructuring, industrial restructuring and the transfer of international capital to accelerate the international capital and technology to transform China's traditional industries.
2.4 Bneicial to the improvement of its international status
Since the 1990s, the trend of globalization of the world economy became increasingly obvious and no national boundaries global production system is taking shape. 45% of The world's total production, the 60% of The total international trade, , 85% of the transnational technology transfer, 90% of the global R & D investment are occupied by multinational companies. China with a population of 1.3 billion, has insisted the implementation of the reform and opening up policy. the necessity of goods, capital, technology and manpower to the world and opening up, in 1978 total 100 US dollars of imports, in 1997 reached 100 billion US dollars, and now is 300 billion US dollars, this growing market, since entry into the WTO, China participated in the process of economic globalization, and also determine its contribution to the world economy. Britain spent 58years, the United States 47, Japan 35 so that per capita income has doubled, while China only spent 10. China's fast economic growth speeds up the potential market into a real market rate. China's accession to the WTO, with the world economy interactive system, added that integration into the mainstream, to participate in the process of economic globalization, the WTO and the world will surely enhance the economic vitality and strengthen the rules of the WTO system, and reflect the interests of developing countries. As the development of developing countries will inject new vitality into the economy saturated markets of the developed countries, which will better promote world economic development, and are beneficial to economic development of developing and developed countries, while the WTO's authority and credibility will be enhanced. It is favorable to the long-term sustainability of China developments in the world economy and raising the status. China has ability to participate in world competition; China will establish an open global trading system to make its own contribution.
The changes of China brought by reform and opening up, especially since the 20 year the founding of china, are attention by people in the world. As a permanent member of the United Nations, under leaders the long-term multi-generational efforts, nearly having one-fifth of the world's population, China has gradually establish a credible political power, prestige image in the world. But as a developing country, China is experiencing the traditional planned economy to a socialist market economy in transition, the economic market still is in a relatively more closed and restricted status. But accession to the WTO, china will be able to fully take advantage of the influence of this global trade organization, and take the initiative to participate in the in formulating of global economy rules to pursue development possibility for themselves and the vast number of developing countries. In improving their own economic strength, but it also fully enhance the country's economic influence and its appeal, to participate the formulation of trade policy of the world. Becoming a full member of WTO, we are no longer simply the implementation of the resolution the WTO, but the resolution-maker and policy makers. As a large developing country, china’s position and role will be further improved and strengthened in international economic life.
2.5 Beneficial to promoting China's economic system reforming and improving and accelerating economic and trade growth
The rules of the WTO is essentially the application and development of market economic rules in the world. And the goal of China's economic reform is to establish a socialist market economic system, and its basic demand is to fully exploit the role of market competition mechanism. Accession to the WTO has promoted the process of China's reform, and promoted the reform of state-owned enterprises, establishing a modern enterprise system, but also promoted system reform of foreign trade, banking, insurance, securities, and commerce and so on in order to meet these needs of the gradual opening up.
Economic globalization is an irresistible trend of history. China's accession to the WTO is the embodiment of the spirit of deepening reform and opening up, and is the extending of China's market economic system. China is a developing country of large potential and huge economic system. China's accession to the WTO such a world economic and trade organizations can play its role in the operational rules. China can participate in formulating the rules, and is not just passive actors, thereby enhancing China's status in the international community as soon as possible integration into the mainstream of the world economy, participating in the economic globalization process and complement each other with the world economy.
The WTO is not only a follow principle of the market economy with free trade, free competition, free price of international organizations. at the same time, the WTO also adheres to the principle of non-discrimination and fair trade principles, including the principle of transparency and in principle of safeguard measures, the Preferential treatment principle to developing countries. the WTO is has been in a fair, stable, coordinated and balanced development of the World Trade Organization initiative. with accession to the WTO, China will accept free and fair principle and treatment, which is a very rare positive factor for committing to the construction and development of China's market economy, which will definitely push China's market economy's overall development.
with accession to the WTO, repealing protection, opening markets, increasing capital, technology and imports introduced from the developed countries china is not only more convenient to learn experience of the modern enterprise system, but also take the opportunity to break local protectionism and the domestic sector monopoly and accelerate the improvement of China's market economic system and legal system building. China also can deal with bottlenecks problems of reform of state-owned enterprises, unemployment, social security to break through the difficult by taking of the advantage of forigners. restrictions the private economy suffered will be abolished and the subsidies to state-owned enterprises will be restricted. Its ownership reform will be inevitable. Nowadays one of the biggest obstacles of state-owned enterprises reform is the lack of strong domestic investors, but multinational corporations are able to better address this issue which will be conducive to reform state-owned enterprises. Faced with the pressure of global competition, enterprises must reform the system which need hard work on the reform of structures and their property rights on that Chinese enterprises can hold the dominant position in international competition. So reform and opening up is the only way, the more the reform and opening up the industry, the more fast the development. Although in theory circles,debate is large regarding China's economic reform, but accession to the WTO, we must face the reality of globalization to speed up reform, which is the government's greatest responsibility. Institutional convergence of economic globalization is the inevitable. Since the 1990s, many countries have carried out economic reform, having transfer the more complicated economic system to a market-oriented economy regulation. China's integration into the global economy, opening up the market to allow foreign goods, capital and services into China by which a competitive economic system has been built up. Therefore, accession to the WTO is an excellent opportunity to China's economic system reforming and improving.
3. challenges faced with china after China's accession to the WTO
China, in the use of the opportunities offered by the WTO ,at the same time will perform its relevant obligations. there is a transitional period of five years in the face of challenges and pressures, but the impact will not be too great.
Firstly, china will be challenged in concepts and systems. The core of the WTO is equal competition, but in our concept, different businesses, different status, the state-owned enterprises is the boss, subsided by the state's investment, and the private sector is the youngest. Private enterprises difference in treatment of state-owned enterprises, are in an unequal status in the competition. There are many laws and regulations not in line with the principles of free trade which need to revise and perfect. The personnel system, such as the systems household registration, cadres to examine and selecting and employing people need to reform. The competition for talent is deep-seated competition, product competitiveness is more apparent. Institutionally, although the market economy is the community of the basic principle of the WTO and China's market economic system, but China is still in the process of reform, theoretical, cultural, political, traditional and other major aspects of the gap will inevitably bring about institutional shock and conflict. Of 134 WTO members, more than 120 are market economy countries, and the others are also growing rapidly in carrying out economic reforms. In the WTO, the main body is enterprise, not the government, but my government is the main investor of state-owned enterprises, governments and enterprises are not independent result in many enterprises lack of competitive vigor, and the state-owned enterprise property rights system will first be affected. In the situation of domestic and foreign markets are gradually integrated, China's economic management means and methods must be changed. The shock to institutions and the impact of reform to chinese state-owned enterprises will be profound and extensive.
Secondly, the pressure on employment and income distribution gap increase. In china's economic structural adjustment, there will be a structural unemployment, and the overall welfare gains are not uniform. Farmers have lands to farm which is not the problem of unemployment, the most important thing is to increase their income. Through the adjustment of crops, some farmers will be transferred from farmland. It is from the labor-intensive crops and land-intensive to be a high-scale farming by farmers to raise labor productivity.
Thirdly, the gap on the level of science and technology with the developed countries enables some industries are in compression. After joining the WTO, China in the field of intellectual property should bear in fulfilling the rights and obligations and strengthen the protection of intellectual property. Those who rely on the imitation of enterprises will be eliminated, letting go a share. Again construction advisory involves in the scope of services trade agreements, trade in goods annual growth rate is far lower than the world growth rate of trade in services, trade in the world tilt to trade in services. In China there is no clear services trade protection measures, entry to WTO will not directly affect China's engineering consulting industry. But the changes of the consulting market brought by China Investment Advisory market reform will be much greater impact on the engineering consulting industry. the next major pressure will be gaps with the developed countries on technogy, and there will be pressure of losing users in China's IT. China's Advisory enterprises should take measures to increase their strength, but also should follow the path of the joint, by jointing to change the disadvantages, and strengthen our competitive strength. develop the joint with external, and through jointing with foreign-funded enterprises to realize complementary advantages. Joint in competition, develop in competition, learn in competition, improve in competition.
Fourthly, there are much more difficulty in the macro-control. After joining the WTO, China's fixed capital investment and products will increase dependence on the international market. when the deadline for the arrival of the WTO commitments, markets of banking, securities, and foreign exchange will be fully open, international commodity markets. The volatility of capital markets and international financial turmoil will have an impact on China, the difficulty of China's macro-control will increase.
4. Conclusion
To sum up, China's accession to the WTO will bring us tremendous opportunities for the development, and impacts on China's economic development will be in all directions, multifaceted. At the same time, it also brings challenges. In the face of economic globalization, accelerateing rational allocation of resources of China's economy and restructuring will effectively the promote greater development of China's economy. Faced with challenge, as long as proceeding from reality and persisting in reform and opening up, china can take out a road to accelerate the development. The projects of the 11th five years’ plan have many new ideas, such as to maintain appropriate growth of GDP, to develop labor-intensive industries and service industries, increase employment opportunities in urban and rural and improve the income of the farmers and reform of the ownership of state-owned enterprises, the same treatment to all domestic enterprises, and so on. china will take full advantage of the opportunities offered by the WTO to increase reform and accelerate the pace of economic development, at the same time meet the tough challenges. China's economic reform has a long way to go, but the prospects are bright.
References:
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