The emergence and growth of China as one of the top economies in the world has been a story of continuous and sustained growth. The measure for economic reforms initiated in the early 1970s by China certainly did play a role. Backed up with growth oriented innovative policies and setting up of a number of free trade zones and globalization, helped China to move ahead on the growth trajectory. The accession of China as a member of World Trade Organization (WTO) on December 11 in the year 2001, paved way for further and faster economic growth of China.
As a major economic power and member of the World Trade Organization, China has had to adjust to the changing times. From reshaping and modifying its economic policies in tune with the expectations of the global trade, the entry of China into the World Trade Organization (WTO) all have had their share. The country has followed up with a policy of setting up a number of free trade zones offering trade incentives and tax. Consequently, a good number of foreign companies have launched their operations into Chinese free trade zones.
The trade norms too have been liberalized and incentives for the promotion of R&D activities have come from the Chinese government and the local authorities.
The customs and tariff rates have been simplified and made rational in many cases. The foreign investment has been encouraged in areas where the Chinese traditionally are not strong. In keeping with the Chinese aspirations of using advantages of being the member of WTO, Chinese companies have been encouraged to make investments in foreign countries through direct ventures, joint venture, partnerships as well as to look for opportunities for acquisition of companies in foreign markets.
Further to the entry of China into the WTO, it has witnessed one of the most impressive economic successes ever seen. A consistent growth rate in the spheres of 9-11% over a period of time, has ensured that it becomes one of the more talked and discussed countries across conference rooms, seminars and discussion boards. From agriculture, foodstuff and beverages to paper making, printing, packaging, medicines and healthcare, chemicals, real estate to automobiles, transportation, logistics, textiles, light industry, utilities, consulting, banking and financial services all have recorded impressive economic growth in China.
After the entry of China into the WTO, country is making a renewed endeavor to make adjustments on the economic front. On issues relating to agricultural subsidies, environment and intellectual property rights, China is making efforts to conform to the global standards as spelt out by the WTO. Also in terms of bilateral and other trade disputes, China has moved to the WTO in a number of cases. Financial services are another area where the World Trade Organization in China has made it make relevant amendments and changes in the policy. The entry of China into the WTO has been one of the momentous incidents of recent times in the history of international trade with widespread ramifications for the global economy.
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