China Joins the World Trade Organization
Membership after fifteen years of talks helped make China the workshop of the world.
On December 11, 2001, China formally joined the World Trade Organization after fifteen years of complex negotiations. The country had maintained a closed, planned economy under the Chinese Communist Party until launching its reform and opening-up policy in 1978. After gaining observer status with the General Agreement on Tariffs and Trade in the early 1980s, Chinese representatives began seeking membership in 1986. China aspired to enter as an original founding member of the World Trade Organization, but the United States, European nations, and Japan insisted that Beijing first commit to major market openings, lower tariffs, and structural revisions to its industrial strategies.
Bilateral ties with the United States formed a central element of the accession pathway. Following the establishment of formal diplomatic relations in 1979, the United States Congress temporarily granted China most favored nation status in 1980, though annual reviews under the Jackson-Vanik Amendment sparked recurrent debates over human rights metrics. Tensions also deepened over security controversies, trade disputes, and export curbs after 1989. Despite these challenges, bilateral trade expanded rapidly. After arduous negotiations, American and Chinese delegates reached terms in Beijing in November 1999, followed by the United States House of Representatives approving permanent normal trade relations in May 2000.
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Sources
- China and the WTO: Member information (World Trade Organization)
- WTO successfully concludes negotiations on China's entry (World Trade Organization)
- World trade 2009, prospects for 2010 (World Trade Organization)
- Trade in Goods with China (U.S. Census Bureau)
- China Overview (World Bank)
- China and the World Trade Organization
Image: Benoît Prieur