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China Celebrates 5 Years with the World Trade Organization

It`s been 5 years since China joined the World Trade Organization. China gave up some of its freedom, of which it was sternly protective in the past 1,000 years, and accepted universal standards. The benefits of membership are well felt by the urban middle-class, imported cars have become cheaper, the banks offer more diverse services, and the supermarkets are better stocked with a growing diverseness of consumer goods. But not all have benefited from the change, customs fell causing damage to the agricultural sector, on which millions of poor Chinese farmers are dependant.

China`s membership in the WTO caused vast changes in the entire Chinese economy. Trade volumes grew immensely. The percentage of trade out of the country`s gross national product (GNP), an indicator used to measure an economy`s openness to the world, has risen from 44% in 2001 to 72% today. In the US only 21% of the GNP is generated by trade volume. On average China`s export grew every year by 29%.

Experts say that China`s joining the WTO has had a major effect on the flow of international trade, and the world is expected to continue adapting. Currently, China faces legal action for flooding certain markets causing prices to decrease. Many annalists believe that these are the final murmurs of dying industries in the developed world before they eventually give up and collapse in the face of the Asian giant. As time goes by, the international economy will adapt to China`s membership in the organization and these lawsuits will diminish.