20 years of China’s accession to the WTO: Making a significant contribution to safeguarding the multilateral world
Wang Huiyao (Director of Globalization Think Tank (CCG))
This year marks the 20th anniversary of China's accession to the World Trade Organization (WTO).
On May 14, the Globalization Think Tank hosted the "WTO Reform Prospects and China's Role-China's WTO 20th Anniversary Seminar". Long Yongtu, Chairman of Globalization Think Tank, Chief Negotiator for China's Rehabilitation and WTO Entry, Former Deputy Director-General of WTO , Former Vice Minister of Commerce Yi Xiaozhun and other guests attended the meeting.
Participants believed that China should firmly maintain and promote the development of the WTO's multilateral trading system and enhance its authority and effectiveness.
The predecessor of the WTO was the General Agreement on Tariffs and Trade, which was signed in 1947 and temporarily applied on January 1, 1948.
Since the end of World War II, the world has maintained prosperity and stability for more than 70 years, and the vigorous development of global trade is indispensable.
Over the past 20 years since China’s accession to the WTO, China has developed into the world’s second largest economy, largest trader in goods, and largest foreign investment absorbing country. The total economic volume has increased by nearly 11 times. The Chinese economy and the world economy have achieved mutual benefit in mutual promotion win.
At the same time, China is also the biggest contributor to the multilateral trading system. China's accession to the WTO has not only changed the world economic and trade pattern, but also enhanced world stability and security.
WTO statistics show that in the past 20 years, the world's total trade in goods has almost doubled, of which China's exports of goods have increased by more than 7 times, and China's total imports of goods have also increased by nearly 6 times.
In 2000, China's total imports accounted for 12% of the world's total imports of goods trade.
In terms of service trade, China’s service trade exports accounted for 3% of the world’s total service trade exports, increasing from 3% in 2005 to 6% in 2020. Service trade imports accounted for the world’s total service trade imports, up from 3.3% in 2005. Increased to 8% in 2020.
The volume of trade between China and major developed and developing countries has also grown rapidly.
In 2001, China's imports accounted for less than 2% of the total US exports. In 2020, the total US exports to China increased to 9% of the total US exports. China has become the third largest export market of the United States.
The Chinese market is more important to other emerging economies. For example, today China has absorbed nearly 32% of Brazil's exports.
In addition, since 2008, China has been the main export destination of the least developed countries, absorbing 25% of the exports of the least developed countries.
While promoting the development of the world economy, China has also contributed to the liberalization of global economic trade and global governance.
Since the end of the Doha Round of negotiations, most members of the WTO have basically stayed in place and stalled in terms of trade liberalization. Over the years, the major contributions to WTO opening have been China and other newly acceding countries.
WTO data shows that China’s import tariff has dropped to 7.5%, and the trade-weighted tariff rate has dropped to 4.4%, which is very close to the European and American tariff levels, and far lower than the 10% promised when China joined.
Regarding the opening up of trade in services, China has also launched major opening-up measures in many areas such as finance, insurance, legal services, and distribution on the basis of its WTO commitments, which have been widely welcomed by WTO members.
The WTO is an international organization based on multilateral rules. China does not lag behind developed countries in abiding by the rules and fulfilling its commitments.
In 2020, the sudden new crown epidemic intensified the wave of anti-globalization and the crisis of unilateralism. The order of the WTO was threatened, and the authority and effectiveness of the multilateral trading system were questioned.
As a beneficiary and contributor to the multilateral system, China must do its best to maintain the multilateral system. Reform and opening up are still the only choice to resolve many contradictions currently facing the international community.
To respond to changes in the external environment, China must adhere to globalization; adhere to globalization must adhere to a high-level opening to the outside world; high-level opening to the outside world must shift from the openness of factor mobility to institutional openness.
With the rise of China and emerging market countries and the growth of the economic strength of developing countries, the world is developing towards multi-polarity, and the current WTO order is no longer suitable for the new situation of world economic development.
But this does not mean to abandon the multilateralism system, but to reform the multilateralism system to better exert its effect on world peace, stability and development.
Yi Xiaozhun believes that, in the face of various issues and reform initiatives put forward by various WTO members, China should support those issues and initiatives that guide and promote trade liberalization and facilitation, and avoid the weakening of the multilateral trading system. And split.
On March 1, the new WTO Director-General Iweala took office after the position was vacant for nearly half a year, and recently appointed four Deputy Director-Generals, including the Vice Minister of China’s Ministry of Commerce, the former Chinese Ambassador to Geneva and WTO Zhang Xiangchen.
With all walks of life both having hopes and worries about the WTO, Iweala’s move will help give full play to the role of the Secretariat and vigorously promote the work of the WTO.
In December this year, the 12th WTO Ministerial Conference will be held. The outside world expects that this conference will help rebuild the WTO's authority and effectiveness in the global trade order. In view of China's huge share of global trade, China needs to constructively make good use of China's position and weight in the WTO, and promote the multilateral trading system to continue to develop along the track of trade liberalization and facilitation, rather than sliding into trade. protectionism. An open and sustainable multilateral trading system will help China achieve its goal of all-round development and peaceful rise.