The state council information office for the people’s republic of China has (SCIO) has released a whitepaper on the World Trade Organization and China on Thursday, highlighting the country’s contribution in world trade.
The country has published the report to show how Chinese government has fulfilled the WTO commitments, explain its policies, principals, stances and propositions in multilateral trading system and describes its actions and vision in achieving higher level reforms, China has been a member of WTO for the last 17 years, the country became the member of WTO on December 11, 2001.
How China has fulfilled its WTO promises, China has gradually opened market access in agriculture, service sector and manufacturing and better protection of intellectual property rights (IPRs).
China has significantly contributed towards market development by lowering agricultural tariffs. China has imposed minimum bound tariffs on agricultural products, China accounted for 65% whereas; US 440%, EU 408% and Japan had 1706%.
Reduced non-tariff barriers to trade
China has significantly contributed in reducing non-tariff barriers to trade, China abolished import quotas, import licenses and special tenders on 424 notable taxable items. China allowed and supported local companies in July 2004 to engage with international firms to improve trade. In 2001, Chinese state-owned companies had a share of 42.5% share in foreign trade as compared to 57.5% share of private companies. In 2017, state-owned companies share was reduced to 16.3% and private companies was increased to 83.7%.
Since 2007, China has fulfilled its promises to push services sector, China has treated other foreign companies as their home companies by allowing full foreign ownership to 54 sub-sectors, foreign ownership in 23 sub-sectors and national treatment in 80 sub-sectors.
As a result, China attracted for Foreign Direct Investment (FDI) in the services sector, in 2010 FDI in services sector crossed the popular manufacturing sector and in 2017 services sector accounted for 73% of FDI.
In protecting Intellectual property rights (IPRs) China has played a significant role in IPRs, royalties from China in 2001 accounted for 1.9 billion dollars which jumped to 28.6 billion dollars in 2017.