IN FOCUS
By Keerthana Nambiar 

Two decades of China’s accession to WTO

On 11 December, the People’s Republic of China marked its 20th anniversary of Beijing’s accession to the World Trade Organization (WTO). China’s accession to the WTO transformed the Chinese economy as well as the global economy. “Twenty years have since passed, with China now a vital stabilizer in the world trade landscape, not only having fulfilled all its promises, but also charting a course for wider opening-up amid rising de-globalization and the persistent pandemic posing a challenge to global trade,” reported Global Times. South China Morning Post commented: “the 2001 accession has transformed China internally, and provided a notable landmark in the country’s passage from a sad, secretive, impoverished shambles in the 1970s to a significant force at the heart of the global economic today.” The Korea Herald noted that China has a history of “complying and modifying its policies when a WTO dispute panel rules against it.” “Since 2001, there have been 47 complaints lodged against China, accounting for 12.2 percent of all WTO dispute cases during that time,” added The Korea Herald.

China’s accession to WTO
Until the 1970s, the Communist Party of China managed China’s economy keeping it restricted within the borders. In the early 1980s, with the political reforms, China began opening its economy and signing regional trade agreements. On 11 December 2001, China joined WTO with distinct obligations: a multilateral framework consisting of the General Agreement on Tariffs and Trade (GATT), the General Agreement on Trade in Services (GATS), Intellectual Property Rights and Dispute Settlement Understanding (DSU); a plurilateral framework of the Government Procurement Agreement (GPA) and/or the Agreement on Trade in Civil Aircraft; China’s own Protocol of Accession. 

China’s economic achievements
According to the EastAsiaForum, in China, over half a billion people escaped poverty and is now the world’s largest trading nation and is trading with 120 countries all over the world. China concentrated on its manufacturing industry and became the factory of the world vacuuming up resources to fuel its production including energy, raw materials from other countries.

With the Chinese growth of markets, there were rapid structural adjustments in the global economy. Countries with flexible markets facilitated changes with China seeing a sustained lift in living standards and further deepening economic integration with Beijing through the supply chain specialization. This shift has brought in huge benefits as well as adjustments in the global system.

Chinese conditioning of WTO
The WTO faces a lot of challenges starting with the global trading system to the COVID-19 pandemic. China’s integration with the world economy which stood before the WTO membership has now increased by 12-fold with foreign reserves increasing to $2.3 trillion.  China’s accession to the WTO changed the scenario for US and European countries. The WTO is now struggling to keep up with the changes along with rivalry between the US and China. The United States and its allies are forging economic and military partnerships to keep China in check and blame Beijing for not following the WTO regulations. Even though the US itself has opted out of playing by the WTO rules and undermines the system, Washington calls on Beijing to be a responsible stakeholder.

References:
“What’s needed two decades on from China’s accession to the WTO,” EastAsiaForum, 13 December 2021
“Twenty years on, China’s WTO accession puts the world in the fast lane,” Global Times, 10 December 2021
“ As China marks 20 years of accession to the WTO, what of the trade body’s vitality and relevance?,” South China Morning Post, 12 December 2021
Faisal Islam “How the West invited China to eat its lunch,” BBC, 12 December 2021
Shang-Jin Wei, “Misreading China’s WTO record hurts global trade,” The Korea Herald, 13 December 2021

IN BRIEF
By Dincy Adlakha and Avishka Ashok

INTERNAL
President Xi meets representatives for Peaceful China Initiative
On 16 December, Xinhua reported that Chinese President Xi Jinping met representatives of the Peaceful China initiative and commended them as role models for the country. 140 organizations and 130 individuals were lauded for their efforts in building the reality of a Peaceful China. Other senior officials such as Premier Li Keqiang and members of the Standing Committee of Political Bureau of CPC Central Committee were also present at the commending conference. (“Xi meets with role models for building peaceful China,” Xinhua Net, 16 December 2021)

RCCK Central Committee opens for Plenary Session
On 16 December, the Revolutionary Committee of the Chinese Kuomintang held the fifth plenary session of the 13th Central Committee. Chairman of the RCCK Central Committee Wan Exiang delivered a work report in the session. The RCCK works to offer advice and build consensus for projects like the implementation of the 14th Five-Year Plan (2021-2025). The chairman urged the committee members to improve self-development and be proactive in discharging their duties of governance. RCCK is one of the eight non-CPC political parties in China. (“RCCK Central Committee holds plenary session,” Xinhua Net, 16 December 2021)

Omicron bypasses immunity of Sinopharm vaccines
On 17 December, South China Morning Post reported that a study by researchers from the University of Washington and Humabs BioMed found that the new COVID-19 variant Omicron escapes the immunity provided by past infections and vaccination. The study also found that the virus can evade immunity provided by the Sinopharm vaccine. Although the study was not peer-reviewed, its lab results say that only a small minority of people develop antibodies for this variant. (Zhuang Pinghui, “Omicron: 2 doses of Sinopharm vaccine offers weak protection against new strain, finds study,” South China Morning Post, 17 December 2021)

ECONOMY
Chinese Vice Premier brings old-age pensions under national unified management
On 16 December, Chinese Vice Premier Han Zheng stressed on unified national management of old-age pensions in a conference. He announced that the implementation of the policy that brings pensions of old-age employees under national unified management is being strengthened. The scheme is applicable only to enterprise employees. This will protect the rights and interests of workers and retirees. He also emphasized the good management of re-allocated funds and fair sustainability of the elderly-care insurance system. (“Chinese vice premier stresses unified management of employee pensions,” Xinhua Net, 16 December)

TECHNOLOGY
China upgrades its fighter jet machinery 
On 16 December, the Global Times reported that the Chinese People’s Liberation Army had upgraded its ship-borne fighter jet after concluding its test flights. The development came to light when the state-owned Shenyang Aircraft shared photos of the aircraft on its social media portals. The new upgrades include enhanced missile pylons, infrared search and track system, radar and wings. (“China reveals upgraded J-15 fighter jet; key aircraft carrier roles expected,” Global Times, 16 December 2021)

INTERNATIONAL
Chinese Foreign Ministry criticizes UK’s visa scheme for Hong Kong residents
On 16 December, Chinese Foreign Ministry spokesperson Zhao Lijian criticized the British National Overseas (BNO) scheme of the UK to attract Hong Kong citizens. The law, launched as a response to the National Security Law, allows Hong Kong residents and their dependents to live in the UK and attain naturalized citizenship. Over 90000 people have applied under the scheme to resettle in the UK. China maintains that UK’s moves have turned Hong Kong citizens into “second-class citizens” as Zhao said: “In flagrant violation of its international commitment, the UK tries to turn many Hong Kong residents into ‘second-class citizens’ in the UK and reap benefit from this.” Zhao also mentioned that London is fond of degrading China with false reports. (Rhoda Kwan, “Beijing criticises UK for creating ‘second-class citizens’ with Hong Kong visa scheme,” The Guardian, 16 December 2021)

Senior US official hopes for arms control talks with China
On 16 December, Reuters reported, citing a senior US State Department official, that the US is hopeful for an arms control talks with China soon. The official also said that the likelihood of such a talk series was indicated in the November video-call conversation between President Xi Jinping and President Joe Biden. According to US estimates, China’s nuclear arsenal could double in a few years. Due to such developments, the talks seem imminent, although a timeline for the same was not provided. (Stephanie Nebehay, “U.S. says it hopes for arms control talks "soon" with China,” Reuters, 16 December 2021)

Australian treasurer calls Australia victim of “economic coercion” by China
On 17 December, Australian Treasurer Josh Fryudenberg said that Australia has been subjected to “economic coercion” by China. He said that China needs the resource exports from Australia and is still pressurizing Australia through various trade disputes. He said that Australia and its iron ore exports to China are irreplaceable but still, Australia has seen souring relations as China imposes multiple tariffs, restrictions and barriers on Australian wine, barley and coal. (“Australia facing economic coercion from China - Treasurer,” Reuters, 17 December)