China in the WTO

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China in the WTO

• China Institute for Reform and Development/GTZ
• Haikou, China
• November 17-18
• Razeen Sally, ECIPE/LSE

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CHINA, WTO, DOMESTIC REFORMS

• Up to WTO accession
• China in WTO after accession
• National reforms post WTO accession
• What China needs to do

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CHINA, WTO, DOMESTIC REFORMS

• Up to WTO accession
• -- Radical unilateral opening of economy in 1990s
• -- Tough WTO negotiations very strong accession
  commitments
• -- Mutually reinforcing domestic and WTO reform
  processes

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Changes in average statutory tariff rates in
China ()
Source World Bank (1999, p340) to 1998.
Ianchovichina and Martins calculations for
tariff lines with imports from 1999 and Chinas
final WTO offer. CDS Consulting Co. provided
applied tariffs for 2001. Trade data comes from
COMTRADE. Source Elena Ianchovichina and
William Martin, Economic impacts of Chinas
accession to the World Trade Organisation, World
Bank Policy Research Working Paper 3053, May 2003.
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Changes in the import coverage of nontariff
barriers from 1996 to 2001
Note Calculations for 2001 performed by Mei Zhen
of MOFTEC during an internship at the World
Bank Source Elena Ianchovichina and William
Martin, Economic impacts of Chinas accession to
the World Trade Organisation, World Bank Policy
Research Working Paper 3053, May 2003.
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Formal unilateralism reductions in applied MFN
tariffs on
Source Richard Baldwin 2006 Kimura, Takahashi,
and Hayakawa (2005)
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Applied Tariff rates in Asia
Malaysia 1996 Vietnam 1997. All tariff rates
are based on unweighted averages for all goods in
ad valorem rates, or applied rates, or MFN rates
whichever data is available in a longer period.
Source World Bank
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Bound and applied MFN tariffs in Asia
The figures are simple unweighted averages of the
tariff rates in percent from the year of 2003 and
2004. Source World Bank
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Table x Coverage Ratio of Non-tariff Barriers
in Import Trade (Unweighted, percent)
Notes Not available Calculated as
percentage of import value of HS6 tariff lines
affected by NTBs in total imports. NTBs include
quantitative restrictions in the form of all
types of licenses and import authorization,
quotas, import prohibitions, advanced import
deposits, foreign exchange restrictions, fixed
customs valuations, and state trading
monopolies. Figures reported under a given
sub-period relates a single year within that
sub-period. Source Hoekman et al (2002,
Table A-4 and WTO, Trade Policy Review Country
Report (various)
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Figure 9 Total Trade (Goods Services)
Source WTO, International Trade Statistics
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Figure 10 Trade/ GDP
Source World Bank, World Development Indicators
(WDI)
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Pie 1 (i) Share of Global Trade (Goods)
Source WTO, International Trade Statistics
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Pie 1 (ii) Share of Global Trade (Service)
Source WTO, International Trade Statistics
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Figure 15 Inward FDI Flows
Source UNCTAD, FDI Key Data
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Figure 2 IFDI Stock Accumulated 1980-2005
(percentage of Global IFDI Stock)
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CHINA, WTO, DOMESTIC REFORMS

• China in the WTO post-accession
• -- General locking in domestic reforms becoming
  a stakeholder in multilateralism setting an
  example (e.g. Vietnam) integrating into the
  global economy
• -- DDA pragmatic, but largely passive punching
  below weight
• -- DSM listening and learning mutual restraint
  but now more action
• -- Implementation a mixed record

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CHINA, WTO, DOMESTIC REFORMS

• National trade-related reforms post-WTO accession
• -- Credits WTO lock in managing tensions with
  trade partners some WTO-plus reforms
• -- Debits Reform slowdown inevitable
  complications
• -- Other developments FTAs energy/investment
  nationalism industrial policy

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Table 14 Recently Established or Proposed
RTAs/CEPAs in ASEAN, China and India, 2000-2007
(contd)
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The map shows FTAs signed or under negotiation in
January 2006. East Asia is defined here as the
10 ASEANs, China, Japan and Korea. Source Richard
Baldwin 2006
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CHINA, WTO, DOMESTIC REFORMS

• What China needs to do
• -- National reforms WTO implementation WTO-plus
  reforms (services and investment) moving to 2nd
  generation regulatory reforms wider reforms and
  context
• -- Faster unilateral reforms in Chinas own
  interest
• -- China as engine of Asian and global unilateral
  liberalisation
• -- WTO strengthening rules post-Doha China must
  move to co-leadership
• -- FTAs more caution cleaning up the mess
• -- Key bilateral relationships What others need
  to do, esp. USA and EU

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Table 1 Ease of Doing Business
Source The World Bank Doing Business Database
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Table 2 Trading Across the Border
Source The World Bank Doing Business Database
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Table 3 Governance Indicators
Source The World Bank Doing Business Database