China's Entry Into the World Trade Organization (Routledge by Peter Drysdale, Ligang Song

By Peter Drysdale, Ligang Song

This quantity offers a close up to date research of the strategic matters and coverage concepts of China's accession to the WTO. Quantitative research demonstrates how tariff relief because of China's accession to the WTO will profit the chinese language economic system in addition to the remainder of the realm. The booklet argues that there's no unmarried alternate coverage initiative prone to bring about greater earnings in foreign alternate within the foreseeable destiny than China's accession to the WTO.

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Additional info for China's Entry Into the World Trade Organization (Routledge Studies in the Growth Economies of Asia)

Sample text

In 1993, the government allowed the lease contract to be extended for another thirty years after the first contract expired. Unlike the spontaneous nature of institutional reform in farming, reform in the micro-management system of state enterprises was initiated by the government. These reforms have undergone four stages. The first stage (1979–83) emphasised several important experimental initiatives that were intended to enlarge enterprise autonomy and expand the role of financial incentives within the traditional economic structure.

After recovering from war-time destruction in 1953, the Chinese government planned to establish heavy industry as the priority sector. The goal was to build, as rapidly as possible, the country’s capacity to produce capital goods and military materials. 2 The traditional economic structure in China was shaped by the adoption of this strategy. 32 ECONOMIC REFORM AND DEVELOPMENT STRATEGY IN CHINA Heavy industry is a capital-intensive sector. The construction of a heavyindustry project requires a long gestation;3 most equipment for a project, at least in the initial stages, needs to be imported from more advanced economies; and each project requires a lump-sum investment.

5). China is the world’s largest producer and consumer of many commodities, including a wide range of simple manufactured goods and industrial raw materials (coal, cotton, grain, steel and wool), so that normal fluctuations in Chinese supply or demand inevitably have a substantial effect on world markets. These effects have been exacerbated by policy instability in China in the partially reformed economy of the past fifteen years, especially in relation to industrial inputs. Fluctuations in Chinese supply and demand have their greatest impact in commodities in which international markets are separated from major domestic markets by quantitative restrictions and other controls, so that the international market is simply a residual market, potentially highly volatile in response to relatively small fluctuations in net exports from a major economy.

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