China’s trade with the world grows ninefold after 20 years in the WTO

In the 20 years since joining the World Trade Organization (WTO), China has increased its foreign trade ninefold, leapfrogging the United States to become the main player. However, little progress has been made in reforming state-owned enterprises.

Armed with cheap labor, China has steadily increased exports, taking on the role of a global factory since joining the WTO in December 2001. It has also increased imports by gradually lowering tariffs.

Its exports jumped 870% and imports increased 740% from 2001 to 2020, according to the United Nations Conference on Trade and Development (UNCTAD). Total trade value increased 810% compared to a 180% increase for overall global trade.

But the lack of progress on controversial issues such as domestic subsidies and the special treatment of state-backed companies is likely to become an obstacle as China pursues its global ambitions by adhering to the 11-nation Pacific Rim trade pact known as the Comprehensive Agreement and Progressive to Trans-Pacific Partnership (CPTPP).

Chinese President Xi Jinping praised his country’s progress in trade liberalization during a speech on November 4th at the China International Imports Fair in Shanghai.

“China has fully fulfilled its membership commitments,” Xi said. “Its overall rate was cut from 15.3% to 7.4%, down from the 9.8% adherence commitment.”

Shortly after joining the WTO, labor-intensive products such as clothing accounted for the majority of Chinese exports. But in recent years, China has increased exports of high-tech items such as personal computers and smartphones.

China now accounts for 13% of global trade, overtaking the United States in 2013. China is now the main trading partner for many countries, including Japan.

Source: Valor Econômico

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https://valor.globo.com/mundo/noticia/2021/11/08/comrcio-da-china-com-o-mundo-cresce-nove-vezes-aps-20-anos-na-omc.ghtml

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