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China’s ten-year WTO membership overshadowed
Beijing celebrates the tenth anniversary of its entry in the World Trade Organisation, a period of extraordinary growth for its economy. However, behind the smiles, problems lurk, ranging from an undervalued yuan to unfair trading practices. A US ambassador goes further, attacking Beijing for using “intimidation as a trade tool”.
Beijing (AsiaNews) – China is marking the tenth anniversary of its entry into the World Trade Organisation (WTO) amid bright spots and dark shadows. On 11 December 2001, the People’s Republic was admitted in the organisation following a series of market reforms and overtures, an impressive record for a socialist state. Now it has become the world’s second largest economy.
However, if the 15 years it took Beijing to prepare this step are seen as impressive by historians and analysts around the world, the Asian giant has maintained its economic supremacy with instruments that range from currency undervaluation to bullying in trade relations.
Trade in goods such as clothing, electronics, toys and appliances soared to almost US$ 3 trillion last year from US $ 510 billion in 2001. China’s textile exports amounted to US$ 77 billion in 2010. Foreign financing in China has climbed to more than US$ 700 billion in the last decade.
However, these results have led to resentment. Both the United States and the European Union are involved in a number of trade disputes with China at the WTO. The 27-nation EU has imposes anti-dumping duties on almost 60 products from China whilst the US has lodged 12 complaints.
There is also a “perception among WTO members that Chinese government authorities at times use intimidation as a trade tool,” US Ambassador Michael Punke said. “China seems to be embracing state capitalism more strongly each year, rather than continuing to move toward the economic reform goals that originally drove its pursuit of WTO membership,” he added. In China, the statement was met with strong criticism with observers asking for evidence to back the claim.
China’s currency policy is another source of disagreement. Beijing is accused of keeping the value of the yuan low to cut prices and boost exports. This is a major irritant for Washington. In fact, China’s trade surplus with the US has helped the country accumulate a record US$ 3.2 trillion in foreign-exchange reserves
In China, the economy’s growth is also raising questions. After a scholar revealed the underlying weaknesses of the economy, President Hu Jintao tried to reassure the population.
"We will strengthen economic cooperation with countries that have substantial trade deficits with China, and work together with them to gradually resolve trade imbalances," Hu said in a speech marking the tenth anniversary of China’s entry into the WTO.