China celebrates five years in World Trade Organisation
Beijing (AsiaNews) – China today marks the 5th anniversary of its accession to the World Trade Organisation (WTO). Experts are celebrating its record economic development and its integration into the world’s trading system, but are also highlighting the very high social cost development has entailed as well as its structural and environmental impact.
In five years China has become the fourth largest economy (in 2005) and the world's third largest exporter this year (after the United States and Germany). Its gross domestic product has nearly doubled in the past five years, reaching US$ 2.2 trillion last year, up from US$ 1.3 trillion in 2001. External trade volume tripled in six years, from US$ 474.3 billion in 2000 to US$ 1.422 trillion last year, with exports jumping from US$ 249.2 billion to US$ 762 billion in the same period. China has already overtaken Japan in terms of foreign reserves, which hit US$ 1 trillion by the end of October.
According to World Bank figures, China has contributed an average of 13 per cent to global economic growth every year in the past five years. Its products have flooded world markets stocking shelves at Wal-Mart, Carrefour and Tesco, keeping inflation down. More importantly, “[n]o country has benefited more from the WTO membership than has China,” said Deng Hongbo, director of the mainland's World Trade Organisation Affairs Centre.
The 5th anniversary of its entry into the global trade body also ends the grace period during which China had to change its rules and completely open its own domestic market to foreign competition.
Serious shortcomings remain, most notably transparency and intellectual property rights. Western markets have also been flooded with counterfeit Chinese products.
Financial services loom as a key benchmark of China's WTO accession agreement compliance. But Beijing has waited until the last minute to open its banking sector to foreign banks, considered more competitive than domestic ones.
The European Union and the United States are pushing for revaluation of the yuan and full access to the Chinese market for foreign goods so as to correct their trade deficit with China.
In the meantime the country’s economic success has come with a heavy price in environmental, social and institutional terms. Twenty-five years of economic growth have been achieved by totally disregarding the environment. China is both the world's second biggest consumer of energy and emitter of greenhouse gases. Experts have pointed out that across the country, there is no rain which is not acid and there is no river which is not polluted.
Concerns for pollution-free development have only recently been voiced. But even the most optimistic forecasts expect limited reduction for several years and must face those who believe that pollution controls are an obstacle to economic development.
At all levels and in all sectors, corruption among public officials and private entrepreneurs is widespread.
Above all, without vital reforms in land ownership the urban-rural gap will continue to grow with city dwellers benefiting from economic growth and farmers, without proper health care and social assistance, getting poorer.
Land remains at the core of the problem with farmers too often victims of land grabs and low incomes and policies that favour industry and business interests. Making matters worse farmers are also faced with various official restrictions and barriers when they try to move into cities to find jobs.
Growing social inequalities have led to widespread social unrest with 87,000 recorded incidents in 2005. Social stability itself is threatened.
Because of fears about it, the central government has long kept tight controls over the pricing of electricity, natural gas, coal, water and petrol. However, tight price controls mean that the government is effectively providing indiscriminate subsidies to businesses and the rich, leading to enormous waste and hampering meaningful conservation efforts. (PB)
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