China powers the global market economy

December 11 marks the 15^th anniversary of China joining the World Trade Organization (WTO). In the past 15 years, China has gradually walked to center stage of the world economy. Currently, China is the number one producer in the world, has the number one consumer market, and attracts the most foreign investment.

In these 15 years, China has realized almost all of its commitments in joining the WTO. However, some member countries still go against the treaties signed when China joined the WTO, and refuse to recognize China’s ‘Market Economy Status’.

Behind this so-called “nonrecognition of China’s market economy status”, is another purpose. Other countries conduct  “anti-dumping” investigations regarding China, while still using prices from the “The Third Market” as reference. They do this instead of using China’s market prices as a reference, so as to levy high duties on products coming from China. Yet, in so doing, only those countries will be hurt.

Nowadays, China makes roughly one-third of the commodities sold on the global market, putting it in first place. The quantity of type of commodities covered in China’s “Number One World Market Share” is almost 2.5 times that of the United States, which ranks second. Most of the Chinese-produced goods are high-end products. In such a world market, what sort of outcome will non-recognition of China’s market economy have? Obviously, it is almost impossible that those countries have protected their industries as they had hoped. But the fact remains that importers take a ‘roundabout way’ to evade high duties from other countries. Thus, an advantage has been gained by the country of transit, and importing countries levying such high duties inflict terrible losses on their own consumers.

Currently, the world economy is extremely complicated, with many kinds of ‘anti-globalization’ factors. However, the main trend of mutually fusing the global market will never change. Anti-historical behaviors such as trade protection, establishing of ‘small circles of trade, and resisting multilateral trade systems, will certainly be submerged by the torrent of the global market.

 (The author is a chief researcher with Chongyang Institute of Financial Studies, Renmin University of China.)

China powers the global market economy

December 11 marks the 15th anniversary of China joining the World Trade Organization (WTO). In the past 15 years, China has gradually walked to center stage of the world economy. Currently, China is the number one producer in the world, has the number one consumer market, and attracts the most foreign investment. In these 15 years, China has realized almost all of its commitments in joining the WTO. However, some member countries still go against the treaties signed when China joined the WTO, and refuse to recognize Chinas Market Economy Status. Behind this so-called nonrecognition of Chinas market economy status, is another purpose. Other countries conduct anti-dumping investigations regarding China, while still using prices from the The Third Market as reference. They do this instead of using Chinas market prices as a reference, so as to levy high duties on products coming from China. Yet, in so doing, only those countries will be hurt. Nowadays, China makes roughly one-third of the commodities sold on the global market, putting it in first place. The quantity of type of commodities covered in Chinas Number One World Market Share is almost 2.5 times that of the United States, which ranks second. Most of the Chinese-produced goods are high-end products. In such a world market, what sort of outcome will non-recognition of Chinas market economy have? Obviously, it is almost impossible that those countries have protected their industries as they had hoped. But the fact remains that importers take a roundabout way to evade high duties from other countries. Thus, an advantage has been gained by the country of transit, and importing countries levying such high duties inflict terrible losses on their own consumers. Currently, the world economy is extremely complicated, with many kinds of anti-globalization factors. However, the main trend of mutually fusing the global market will never change. Anti-historical behaviors such as trade protection, establishing of small circles of trade, and resisting multilateral trade systems, will certainly be submerged by the torrent of the global market. (The author is a chief researcher with Chongyang Institute of Financial Studies, Renmin University of China.)