Table Of ContentChina and the Long March to
Global Trade
“China and the Long March to Global Trade is an indespensable source on China’s WTO
accession. The analysis of China’s integration and adjustment process is in-depth
and insightful, and thus is of enduring value as a case study for other potential WTO
aspirants and new WTO members as well.”
Raj Bhala, Associate Dean and Harris Research Professor,
The George Washington University Law School
“Timely and insightful – a must for experts and non-experts alike interested in
China’s ‘long-march’ towards economic development and integration in the inter-
national economic system.”
Dr Arthur E. Appleton, Lalive & Partners, Geneva
On December 11, 2001, China joined the World Trade Organization (WTO). China
and the Long March to Global Trade examines the prolonged negotiations leading up to
this historic event and supplies a necessary and important analysis of key areas:
● The emergence of China as a market economy and its integration into the global
trading system.
● The rise of the WTO as a successor to the GATT.
● Legal reform in China to facilitate WTO implementation.
This edited collection assumes little prior knowledge of the Chinese accession
process yet provides an in-depth examination of the related issues. It is therefore
suitable for both those who require an introduction to the field and those with an
existing interest in China and the WTO.
Sylvia Ostry is Distinguished Research Fellow, Centre for International Studies,
University of Toronto. She is a Fellow of the Royal Society of Canada. Alan S.
Alexandroff is currently the Director of Research for the Program on Conflict
Management and Negotiation at the University of Toronto, and a Principal of
LECG Inc. Rafael Gomez is Lecturer at the Interdisciplinary Institute of Manage-
ment, London School of Economics and Political Science.
© 2002 selection and editorial matter, Sylvia Ostry, Alan S. Alexandroff and
Rafael Gomez; individual chapters, the contributors
Routledge Studies in the Growth Economies of Asia
1 The Changing Capital Markets of 10 Studies in the Economic History of
East Asia the Pacific Rim
Edited by Ky Cao Edited by Sally M. Miller, A. J. H. Latham
and Dennis O. Flynn
2 Financial Reform in China
Edited by On Kit Tam 11 Workers and the State in New
Order Indonesia
3 Women and Industrialization in Vedi R. Hadiz
Asia
Edited by Susan Horton
12 The Japanese Foreign Exchange
Market
4 Japan’s Trade Policy
Beate Reszat
Action or reaction?
Yumiko Mikanagi
13 Exchange Rate Policies in
5 The Japanese Election System Emerging Asian Countries
Three analytical perspectives Edited by Stefan Collignon, Jean Pisani-Ferry
Junichiro Wada and Yung Chul Park
6 The Economics of the Latecomers 14 Chinese Firms and Technology in
Catching-up, technology transfer and the Reform Era
institutions in Germany, Japan and South Yizheng Shi
Korea
Jang-Sup Shin
15 Japanese Views on Economic
Development
7 Industrialization in Malaysia
Diverse paths to the market
Import substitution and infant industry
Kenichi Ohno and Izumi Ohno
performance
Rokiah Alavi
16 Technological Capabilities and
8 Economic Development in Export Success in Asia
Twentieth Century East Asia Edited by Dieter Ernst, Tom Ganiatsos and
The international context Lynn Mytelka
Edited by Aiko Ikeo
17 Trade and Investment in
9 The Politics of Economic China
Development in Indonesia The European experience
Contending perspectives Edited by Roger Strange, Jim Slater and
Edited by Ian Chalmers and Vedi Hadiz Limin Wang
© 2002 selection and editorial matter, Sylvia Ostry, Alan S. Alexandroff and
Rafael Gomez; individual chapters, the contributors
18 Technology and Innovation in 30 China’s Entry into the World
Japan Trade Organisation
Policy and management for the 21st Edited by Peter Drysdale and Ligang Song
century
Edited by Martin Hemmert and Christian 31 Hong Kong as an International
Oberländer Financial Centre
Emergence and development 1945—1965
19 Trade Policy Issues in Asian Catherine R. Schenk
Development
Prema-chandra Athukorala 32 Impediments to Trade in Services
Measurement and policy implication
20 Economic Integration in the Asia Edited by Christoper Findlay and Tony Warren
Pacific Region
Ippei Yamazawa 33 The Japanese Industrial Economy
Late development and cultural causation
21 Japan’s War Economy Ian Inkster
Edited by Erich Pauer
34 China and the Long March to
22 Industrial Technology Global Trade
Development in Malaysia The accession of China to the World
Industry and firm studies Trade Organization
Edited by K. S. Jomo, Greg Felker and Edited by Sylvia Ostry, Alan S. Alexandroff
Rajah Rasiah and Rafael Gomez
23 Technology, Competitiveness and 35 Capitalist Development and
the State Economism in East Asia
Malaysia’s industrial technology policies The rise of Hong Kong, Singapore,
Edited by K. S. Jomo and Greg Felker Taiwan, and South Korea
Kui-Wai Li
24 Corporatism and Korean
Capitalism 36 Women and Work in Globalizing
Edited by Dennis L. McNamara Asia
Edited by Dong-Sook S. Gills and Nicola Piper
25 Japanese Science
Samuel Coleman 37 Financial Markets and Policies in
East Asia
26 Capital and Labour in Japan Gordon de Brouwer
The functions of two factor markets
Toshiaki Tachibanaki and Atsuhiro Taki 38 Economic Development in South
East Asia
27 Asia Pacific Dynamism 1550—2000 Dependency and the automotive industry
Edited by A. J. H. Latham and Heita Jason Abbott
Kawakatsu
39 Law and Labour Market
28 The Political Economy of Regulation in East Asia
Development and Environment in Edited by Sean Cooney, Tim Lindsey, Richard
Korea Mitchell and Ying Zhu
Jae-Yong Chung and Richard J. Kirkby
40 The Economy of the Philippines
29 Japanese Economics and Elites, inequalities and economic
Economists since 1945 restructuring
Edited by Aiko Ikeo Peter Krinks
© 2002 selection and editorial matter, Sylvia Ostry, Alan S. Alexandroff and
Rafael Gomez; individual chapters, the contributors
China and the Long March to
Global Trade
The accession of China to the World
Trade Organization
Edited by Sylvia Ostry, Alan S. Alexandroff,
and Rafael Gomez
London and New York
© 2002 selection and editorial matter, Sylvia Ostry, Alan S. Alexandroff and
Rafael Gomez; individual chapters, the contributors
First published 2002
by Routledge
11 New Fetter Lane, London EC4P 4EE
Simultaneously published in the USA and Canada
by Routledge
29 West 35th Street, New York, NY 10001
Routledge is an imprint of the Taylor & Francis Group
This edition published in the Taylor & Francis e-Library, 2003.
© 2002 selection and editorial matter, Sylvia Ostry, Alan S. Alexandroff and
Rafael Gomez; individual chapters, the contributors
All rights reserved. No part of this book may be reprinted or reproduced or
utilised in any form or by any electronic, mechanical, or other means, now
known or hereafter invented, including photocopying and recording, or in
any information storage or retrieval system, without permission in writing
from the publishers.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
A catalog record for this book has been requested
ISBN 0-203-56327-1 Master e-book ISBN
ISBN 0-203-34452-9 (Adobe eReader Format)
ISBN 0–415–23361–5 (Print Edition)
© 2002 selection and editorial matter, Sylvia Ostry, Alan S. Alexandroff and
Rafael Gomez; individual chapters, the contributors
Contents
List of illustrations
About the editors
List of contributors
Preface
Acknowledgements
1 General introduction
ALAN S. ALEXANDROFF AND RAFAEL GOMEZ
PART I
Background to China and the World Trade Organization
2 The WTO: post Seattle and Chinese accession
SYLVIA OSTRY
3 Negotiating China’s Protocol of Accession
JEFFREY L. GERTLER
4 Avoiding deadlock
CLAUDE BARFIELD AND MARK GROOMBRIDGE
PART II
China’s global economic integration: economic reform
5 A litmus test for China’s accession to the WTO: reform of its
state-owned enterprises
HARRY G. BROADMAN
6 China’s great leap of faith: telecommunications and financial
services commitments
RICHARD JANDA AND MEN JING
© 2002 selection and editorial matter, Sylvia Ostry, Alan S. Alexandroff and
Rafael Gomez; individual chapters, the contributors
7 Pressures on China from the Asian financial crisis
JOHN D. LANGLOIS JR.
PART III
Transparency and the rule of law: legal reform in China
8 Article X and the concept of transparency in the GATT/WTO
SYLVIA OSTRY
9 The evolution of law in contemporary China: challenges for
WTO implementation
PITMAN B. POTTER
10 China’s accession to the WTO: legal system transparency and
administrative reform
SARAH BIDDULPH
11 Administrative process and the rule of law
HUDSON N. JANISCH
PART IV
Provisional membership and transition mechanisms
12 A transitional review mechanism: has an effective multilateral
mechanism been created?
ALAN S. ALEXANDROFF
13 Conclusion: where do we go from here?
ALAN S. ALEXANDROFF AND RAFAEL GOMEZ
© 2002 selection and editorial matter, Sylvia Ostry, Alan S. Alexandroff and
Rafael Gomez; individual chapters, the contributors
Illustrations
Figures
5.1 China’s implementation of the modern corporation
5.2 Organizational structures of China’s state asset management system
6.1 Structure of China’s current financial system
7.1 Hang Seng China Enterprises Index 1997–9
7.2 Hang Seng Index, Hang Seng China Enterprises Index 1997–9
7.3 Hang Seng China Enterprises Index, China Mobile (HK) 1997–9
7.4 Center–local share of fiscal income 1985–99
7.5 Fiscal deficit 1995–9
7.6 Change in general CPI 1997–9
7.7 Consumer goods retail sales growth 1996–9
7.8 Change in exports and imports 1996–9
Tables
6.1 Establishment: foreign financial institutions in China versus
China’s commercial banks
6.2 Business scope: foreign financial institutions in China versus
China’s commercial banks
6.3 Overview of China’s commitments 2000
7.1 China’s trade balance 1997–9
7.2 Moody’s Ratings: announcement of December 4, 1998
7.3 China’s responses to the Asian financial crisis 1998–9
© 2002 selection and editorial matter, Sylvia Ostry, Alan S. Alexandroff and
Rafael Gomez; individual chapters, the contributors
About the editors
Sylvia Ostry is Distinguished Research Fellow, Centre for International Studies,
University of Toronto. She has a Ph.D. in economics from McGill University
and Cambridge. After teaching and research at a number of Canadian univer-
sities and at the University of Oxford Institute of Statistics she joined the Federal
Government in 1964. Among the posts she held were Chief Statistician, Deputy
Minister of Consumer and Corporate Affairs, Chairman of the Economic
Council of Canada, Deputy Minister of International Trade, Ambassador for
Multilateral Trade Negotiations and the Prime Minister’s Personal Representa-
tive for the Economic Summit. From 1979 to 1983 she was Head of the
Economics and Statistics Department of the OECD in Paris. In 1989 she was
Volvo Distinguished Visiting Fellow, Council on Foreign Relations, New York.
She has received 18 honorary degrees from universities in Canada and abroad
and, in 1987, received the Outstanding Achievement Award of the Government
of Canada. In December 1990 Dr. Ostry was made a Companion of the Order of
Canada, the highest award in the Canadian national system of honours. In June
1991 she was admitted as a Fellow of the Royal Society of Canada. She is a
director of a number of international institutions and private corporations. Her
most recent publications include The Post-Cold War Trading System: Who’s On First?
(University of Chicago Press, 1997) and A New Regime for Foreign Direct Investment
(Group of Thirty, Washington, DC, 1997).
Alan S. Alexandroff is Research Director for the Program on Conflict Management
and Negotiation at the Munk Centre for International Studies at the University of
Toronto and a Fellow-in-Residence for International Policy at the C.D. Howe
Institute. In the private sector world, Dr. Alexandroff is the Toronto/Canada
Office Director of LECG, LLC, an economic and finance consulting firm, where
he consults on trade policy. Finally, he is a Director of Mediated Solutions
Incorporated, a full service dispute resolution firm. He received his B.A., cum
laude, with distinction in all subjects, from Cornell University in 1972, his M.A.
from the London School of Economics and Political Science in 1974 and his Ph.D.
in Government from Cornell University in 1979. He also obtained his LL.B. at
the McGill Law School in 1984; he has written and spoken on a variety of trade
and global economic subjects. In 1994, he was the project consultant on the
international economy for the Canada 21 Project. In September 1994, Dr.
© 2002 selection and editorial matter, Sylvia Ostry, Alan S. Alexandroff and
Rafael Gomez; individual chapters, the contributors
Alexandroff and Dr. Sylvia Ostry completed “The Challenge of Global Trade,
Investment and Finance for Canada,” one of the four position papers prepared
for the Special Joint Committee of the Senate and the House of Commons
reviewing Canadian Foreign Policy. He has written recent articles on Canada’s
trade policy, North American trade policy issues and a number of articles on
China’s accession to the WTO as well as articles on WTO trade policy generally.
Rafael Gomez is a Ph.D. graduate of the University of Toronto’s Centre for
Industrial Relations. He is currently a lecturer at the Interdisciplinary Institute of
Management, London School of Economics and Political Science. He also holds
joint appointments as Research Fellow at the Centre for International Studies,
Centre for Industrial Relations, University of Toronto and Centre for Economic
Performance, London School of Economics. Since 1999 he has delivered lectures
and taught courses in Human Resource Management, Labour Economics and
Comparative Industrial Relations. Dr. Gomez has been a speaker at several
national and international conferences.
© 2002 selection and editorial matter, Sylvia Ostry, Alan S. Alexandroff and
Rafael Gomez; individual chapters, the contributors
