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Membership?
For china and China watchers, December 11, 2006, was a particularly significant day. it
marked the five-year anniversary of the day China gained a spot in the World Trade
Organization and thereby rejoined the global community of market economies that it had
rejected some five decades earlier in favor of central planning. It also represented the deadline for
the implementation of nearly all of Chinas remaining commitments from its accession package.
Phase in full trading and distribution rights to all foreign-owned firms and joint ventures over
te course of three years.
2. Abolish dual pricing, meaning that foreign and domestic companies could not be charged
different prices for inputs.
3. Foreign companies were to be allowed to hold majority shares in Chinese retailers within two
years of accessions and to provide their own retail services within three years os recession.
4. Foreign insurance suppliers were gradually allowed to expand their scope of activity.
5. The maximum percentage equity share that foreign telecommunications suppliers were
allowed to hold in joint vents was steadily increased to 49% to 50%.
6. by 2003, foreign banks were permitted to conduct domestic-currency business with Chinese
enterprises, and by 2006, with Chinese individuals
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if you had been advising Chinese government, would you have recommended
joining the WTO? why? why not? Did China get a good deal?
I had wisely recommended joining the WTO. The principal reason is because, besides all
the struggles that this accession had bring (in short-term) to China is just an evidence that China
must resemble its assets, State-Owned Enterprises, tariff and non-tariff rate in order to improve
itself. China has the biggest market and it can decide the new path of international business.
Despite all the terms that China had to accept for the WTO membership and the obstacles
addressed with other WTO members, it was just one step to enter to the global community of
market economies and even if today they couldn't realize all the benefits that this agreement will
bring, in a long-term, it will help China to consolidate its position on the globalization
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