By Liu Bin, Liu Ying

The State Council Information Office of the People’s Republic of China officially issued the White Paper entitled China and the World Trade Organization (WTO) on June 28, 2018. The White Paper makes four main points: China has faithfully fulfilled its WTO accession commitments; China firmly supports the multilateral trading system; China’s significant contribution to the world after accession to the WTO; and China is actively advancing opening-up to a higher level.

The Chinese government is publishing this white paper to give a full account of China’s fulfillment of its WTO commitments, to explain China’s principles, stances, policies, and propositions regarding the multilateral trading system, and to describe China’s vision and actions in advancing higher-level reform and opening-up. Since its accession to the WTO in 2001, China has made a significant contribution to promoting international trade, increased global wellbeing, upheld the multilateral trading system, and become a key driver for the world economy.

China’s accession made the WTO worthy its name, as China has expanded the scale of multilateral trading system market, bringing vitality, mutual development, and prosperity to its fellow-members.

China Grows Together with the WTO

Having enjoyed the benefits of the accession in economic and trade development over the past 17 years, China has become the second largest economy, the largest trading power, and the largest exporter of the world.

China’s trade environment has been greatly improved as the reform and opening-up. Streamlining administration, and delegating power to the lower levels, have released market vitality, introduced foreign capital, and contributed to the prosperous development of both domestic and foreign enterprises. There has also been a remarkable growth in Chinese companies going global. China has become an important global investor – actively involved in the global market, and more integrated with the world economy.

WTO also enjoys benefits brought by China: global trade has more than quadrupled from USD 6.2 trillion at the beginning of the 21^st century to USD 34.8 trillion now.

As the global trade market diversifies, the developing countries, especially the emerging powers, have a bigger role to play in the world economic trading system. The developing countries’ global market share in goods trade has increased from 31.1% in 2001 to 44.4% in 2017.

China Has Done Well in Fulfilling WTO Accession Commitments

Since joining the WTO, China has actively respected the principles of free trade and fulfilled every facet of its accession commitments, including all promises to reduce tariffs on goods – the average tariff has fallen from 15.3% in 2001 to 9.8% now, and continues to fall. China’s trade-weighted average tariff is 4.4%, far lower than the average among developing countries.

China began to open its services as early as 2007. As promised, China has opened 100 service sectors. This includes access to the investment market, even though this was not one of the accession commitments. By twice revising the Catalogue for the Guidance of Foreign Investment Industries, China has reduced restrictions on foreign investment by 65%, and the number of prohibited items to 28.

China has over-delivered on its opening-up targets. Its activities in the WTO have won approval from International authoritative organizations and experts. Former WTO Director-General Pascal Lamy have said that in many instances China had performed well in fulfilling accession commitments. Recently, Adam Posen, director of the Peterson Institute for International Economics, a leading think-tank in the United States, stated publicly that “China has basically complied with all rules of the WTO”. China has been a model member in keeping its promises.

China Is Committed to the Multilateral Trading System

In the past two years, the multilateral trading system under WTO has faced serious challenges. Protectionism has emerged in countries that are failing to respect their international responsibilities. They have sabotaged the multilateral trading environment with their unilateral actions, and severely hindered the benign development of global trade.

In response, China has opted for the well-being of the world by sticking to the multilateral trading system and upholding the WTO rules. China perseveres in dealing with trade disputes under the framework of the WTO, consistently showing that it respects and approves of the WTO. China calls on all countries to join together in support of the multilateral trading system, fight against the challenges it faces, safeguard the validity and authority of the WTO, and promote the sustainable development of global trade.

China is opening wider, and will continue to deliver beyond its promises made when entering the WTO. China will accelerate the construction of free trade zones and freeports, and contribute to global prosperity.

Liu Bin, associate professor of China and the WTO Research Institute, University of International Business and Economics;

Liu Ying, Doctoral student of China and the WTO Research Institute, University of International Business and Economics.

（The article represents the author’s personal opinion which does not represent the China Focus’ stance.）