The Impact on the Automobile Industry in China after Joining the WTO Essay

The Impact on the Automobile Industry in China after Joining the WTO - Essay Example In the end, the entry of China into the WTO was considered a positive thing by most, although there are certainly those with contradictory opinions. The efficacious qualities that China gained by entry into the WTO; an aid to the economy, and the opening up of China’s markets for more international trade and investment (to name a few). The aim of this paper is to discuss more thoroughly on these points and more, and to offer a more in-depth and comprehensive point of view on the situation of the impact on the automobile industry in China after China’s accession into the WTO. â€Å"Since the beginning of economic reform and its opening to the outside world, China’s economy has been growing at a rate of nearly 10 percent annually and its external trade has expanded by more than 15 percent a year. In 1999 China’s trade volume reached $360.7 billion, ranking 9th in the world, with export volume reaching $195 billion. China has emerged to become an important player in world trading system.† (Zhai & Li, 2000). Negotiations over China’s accession into the WTO immediately provoked a debate between â€Å"†¦pessimists who believed that opening the economy would lead to a flood of imports and a de-nationalization of manufacturing industry, and those who believed that it would spur rationalization of state-owned enterprises, lock in domestic reforms, attract foreign investment, and open the way for trade expansion.† (Noble et al). The aim of this paper is to thoroughly realize and discuss these interests and more, in order to come to a clearer and more understanding point of view on the particular situation. In order to do this, the following questions must be addressed: The WTO (World Trade Organization) is an organization which consists of 123 signatory countries. Established on January 1, 1995, and based in Geneva, the WTO replaced the GATT (General Agreement on Tariffs and Trade) as the most primary legal and institutional foundation among the