Why was joining the WTO such a major step for China?

Question

Elena Arenas · Accepted Answer

It made its grip on world economy even bigger

China joining WTO is a major step in its economic development. it is often criticized in the West because it enabled China to capture many markets and thus destroyed millions of jobs in the Western World. The economic growth in the years 2000 in China is unprecedented in human History.

Gianna Adams · Answer

undefined Joining the World Trade Organization (WTO) was a major step for China for several reasons:

1. Access to Global Markets: WTO membership allowed China to gain increased access to global markets by reducing trade barriers and tariffs imposed by other member countries. This facilitated greater export opportunities for Chinese goods and services, leading to significant economic growth.

2. Integration into the Global Economy: Joining the WTO required China to adhere to international trade rules and regulations, promoting transparency and predictability in its trade policies. This integration into the global economy helped China attract foreign investment, technology, and expertise, contributing to its economic modernization and development.

3. Improved Reputation and Credibility: WTO membership signaled China's commitment to international trade norms and standards, enhancing its reputation as a reliable trading partner. This increased credibility boosted investor confidence and facilitated partnerships with other countries and multinational corporations.

4. Structural Reforms: To comply with WTO rules, China implemented structural reforms in various sectors, including agriculture, manufacturing, and services. These reforms aimed to liberalize and modernize the economy, promote competition, and improve efficiency, ultimately fostering sustainable economic growth and development.

5. Legal Framework and Dispute Resolution: WTO membership provided China with access to a formalized legal framework for resolving trade disputes with other member countries. This mechanism helped safeguard China's interests in the global trading system and ensured fair treatment in international trade relations.

In summary, joining the WTO was a significant milestone for China as it opened up new opportunities for economic growth, facilitated integration into the global economy, enhanced its reputation and credibility, spurred structural reforms, and provided a framework for resolving trade disputes.