Automobile Industry in China Essay Example | Topics and Well Written Essays - 4750 words

Automobile Industry in China - Essay Example 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. "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 "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). Th 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: 1. What is the WTO 2. What was China's automobile industry like before China joined the WTO. 3. What was the impact on the automobile industry in China after China's accession into the WTO 4. What conclusions can be drawn from this occurrence By discussing these three questions, we can more precisely comprehend and opinionate on this subject matter. This is what will be dissertated in the following. What is the WTO 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 multilateral trading system of member countries. The aim and prime purpose of the WTO is to set forth the principal contractual obligations which determine how governments outline and execute domestic trade legislation and regulations. Through debate, negotiations, and adjudication, the WTO is the literal platform on which trade relations among separate countries evolve. The WTO is in all actuality the sole organization which deals with the rules of trade between nations. Since the time of its inception, which took place in 1999, protestors and anti-globalization movement contesters have targeted the WTO as a main place of impact. This is because the WTO promotes economic