Financial Institutions: China and WTO

When did China first sign the General Agreement on Tariffs and Trade (GATT)?

China was an original signatory in 1947.

What happened to China's GATT status after the establishment of the People's Republic of China?

China's GATT status was deactivated after 1949-50.

What initiated China's reengagement with GATT in the late 20th century?

Deng Xiaoping's reforms in the late 1970s and early 1980s initiated China's opening.

When did China formally seek to resume GATT contracting party status?

In 1986.

How many rounds of negotiations did China undergo under GATT before the WTO was established?

Over 20 rounds of negotiations failed to produce consensus by 1995.

What significant event occurred in 2001 regarding China and the WTO?

China ultimately acceded to the WTO in 2001.

What is 'GATT-think'?

A blend of explicit legal disciplines and an implicit assumption of a liberal economic order.

What was the original intention behind the GATT?

It was conceived as a stepping stone toward a broader International Trade Organization (ITO).

What expectations did WTO incumbents have regarding China's economic system post-accession?

They presumed China would inevitably progress toward a liberal market economy.

What were the expected tariff reductions for China's industrial products after WTO accession?

Expected to reduce from approximately 25% to about 9%.

What was the anticipated change in China's agricultural tariffs post-accession?

Expected to reduce from around 31% to about 14%.

What is the nature of China's economic system as described in the article?

A hybrid 'socialist market economy' with significant state control and strategic industrial policies.

What percentage of employment in China was accounted for by the public sector in 2019?

About 63% of employment was via publicly controlled entities.

What structural issue does China's economy present in relation to WTO norms?

China's system often conflicts with WTO norms rooted in liberal ideology.

What do the authors suggest is the root cause of tensions between China and the WTO?

The initial false expectations and suboptimal contracting embedded in the accession bargain.

What has emerged as a result of the mismatch between expectations and China's structural reality?

Routine frictions, compliance disputes, and institutional tensions have emerged.

What is the significance of the term 'socialist market economy' in the context of China's WTO membership?

It indicates a system with both state control and market elements, complicating integration into a liberal economic framework.

How did Japan's entry into GATT in the 1950s relate to the liberal order?

Japan's entry was controversial but led to its gradual integration into the prevailing liberal order.

What was a major challenge in China's accession to the WTO?

The challenge was integrating a socialist economic system with the liberal economic principles of the WTO.

What has changed in the perception of China and the WTO over the past 20 years?

The mood has shifted to consistently negative headlines about China in the Western world.

What concept explains the initial optimism about China's economic reforms?

The assumption that Deng Xiaoping's reforms would lead China towards a market economy and liberal democracy.

What was a significant difference in the West's reaction to Japan and China joining the GATT?

Japan was seen as likely to adopt the Western economic model due to US military occupation, while China's integration was viewed with skepticism.

What economic system does China describe itself as having?

China describes its economy as a 'socialist market economy', combining private initiative with state planning.

What percentage of total employment in China was in the public sector in 2019?

The public sector made up 63% of total employment in China in 2019.

What is a 'wholly-owned foreign enterprise' (Wofers) in China?

Wofers are foreign enterprises that can operate in China, allowed under certain conditions.

What does corporatisation of assets in China imply?

Corporatisation does not equate to privatisation, as many state-owned enterprises remain dominant.

What was the expectation regarding tariffs after China's accession to the WTO?

It was expected that the US would maintain its tariffs while China would significantly reduce its tariffs.

What was the historical context of the GATT during the Cold War?

The GATT was part of the West's arsenal during the Cold War, reflecting national security policy through trade.

What was the initial assumption about China's economic trajectory post-accession?

There was an assumption that China would follow a one-way street towards becoming a market economy.

What is the significance of the phrase 'Thucydides' trap' in the context of China and the WTO?

It refers to the potential conflict arising from the power dynamics between a rising China and established powers.