On Dec. 11 2001, China officially became the 143rd member country of the WTO. Since then, it has shifted toward an export-oriented development strategy. It has also become more deeply integrated into the world economic system that formed after World War II.   

Fifteen years have passed, and now China has made great progress in trade and investment. As its position rises in the global market, China continues to contribute greatly to the construction of the international economic order, showing its importance as the world’s second-largest economy.
 

 

Its accession to the WTO has enabled China to take full advantage of the international market and world resources as well as preferential policies allowed within the framework, which has greatly promoted the development of an open economy in China while significantly increasing exports and imports.

Meanwhile, China has comprehensively adjusted its trade system and polices as well as its legal system to conform to WTO rules. In this way, China’s trade system and environment has become more stable and predictable.

In addition, China’s foreign trade has gradually moved into high gear. With an advantage in labor and other resources, China has established unique production and sales networks as well as complete value chains between Asia and the United States, and promoted integral development in East Asia.

Today, changes have taken place in the world economy and new problems are emerging that will influence the sustainable, healthy development of China’s economy while altering the country’s role in world economic and trade pattern to various degrees. For one thing, the global governance system reform apparently has reached a plateau or even shown retrogression.

Though more and more international organizations are setting their sights on global issues, the capacity of the international community to collaboratively cope with crisis is declining.

For another, downside risks in the current world economy are intensifying. Without new growth points, low-speed growth will become the new normal for the world economy, which means that developing countries will face even more severe economic challenges. And also, since the 2008 crisis, there has been a trend toward de-globalization. Protectionism is growing as many countries establish new trade barriers. China’s export trade environment will become more adverse.

What’s even worse is that amid the changes in world economic and trade patterns, some developed countries are trying to seize the initiative to make new international economic and trade rules for the 21st century with the intent of excluding China from this framework. Therefore, in the foreseeable future, China will meet with intensifying rule competition.

Against this backdrop, China has put forth a position geared toward jointly discussing, building and sharing in global governance with the aim of creating a community of common destiny for all mankind. It is not only in accordance with the globalization trend but also conducive to China’s better engagement in the world economy.

Now, concluding the Doha Round will be the priority for China’s future strategies. A multilateral trade system is the best choice for global trade governance. As the biggest world trader, China’s prime aim is to maintain the multilateralism within the WTO.

China should firmly advance the building of the “Belt and Road,” realizing the connectivity in policies, transportation, trade, currency and between people among countries. The initiative should become the chance for China to expand the all-round opening up in depth so that the country can play a bigger role on the world stage.

China should also try to win the right to make international trade rules and inject more positivity into the global economy. To this end, China should be open minded and active in bilateral and multilateral trade negotiations on some trade and investment topics that are in the interest of and favored by the United States and other developed countries.

 

Lei Da and Wang Xiaosong are from the School of Economics at Renmin University of China.