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Discuss and present the ways in which the Chinese business environment will change now that they have entered the World Trade Organisation (WTO).

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Introduction

Discuss and present the ways in which the Chinese business environment will change now that they have entered the World Trade Organisation (WTO). Introduction; This essay will look at China before entering the World Trade Organisation, and after. Due to the times China has entered the WTO and how the business situation has already changed. This essay will show the business environment and its changes. China's entered into the World Trade Organization (WTO) in December 2001, and ever since has brought great opportunities and challenges for the country. First to explain what the WTO is: The WTO was formerly the General Agreement on Tariffs and Trade (GATT). The WTO was formed in 1995, and aims were to promote free trade and to prevent any protectionist measure by member countries. It also has a number of roles, like policing the world trade. According to Hall, Dave. Et al. (2000) book the WTO accounts for 90% of the world trade. Main Findings; The Chinese economy is one that has gone through several years of transformation. The government stays as a one-party communist state. The government does allow a free market to flourish. China is a rich country in natural resources and has a huge population. China was not to bad in the economic growth sector as a graph in the Hall, Dave. Et al. (2000) ...read more.

Middle

This could be measured by the Gross National Product. " Economic growth - an indication of the change in the output or income of an economy. It is usually measured by the change in national income figures (GDP or GNP)" (Hall, Jones, and Raffo 2000: p. 206) Some of the possible negative and positive aspects of China's economic growth after entering the WTO could be more staff (Growth of labour force) needed allowing more jobs available in China. We see in the Workers Power Global article China's Education rate is low so not all the jobs would go to the Chinese people. More investments into the country capital goods and into technology. This is defiantly positive, as it will help the country evolve. Allowing an increase in the income of the economy that is positive for China. Also an increase in competition would be a negative aspect, as many small companies within China would have to deal with big multi-nationals. Increased level of consumption providing a higher real income. So if human welfare is somewhat related to the level of consumption, then that would lead to a gain in society. Another thing regarding China as it entered its gross domestic product (GDP) grew by 7.9 per cent year on year in the first three quarters of this year. ...read more.

Conclusion

The banks in China have been mostly taken over. China may be drained from its profits. It could also be a wrought start for China. Conclusion; I feel that now that China has entered the World Trade Organization (WTO) it has boosted up many economical and governmental aspects of its nation. Its GDP has gone up to 7% helping its economic growth rise. Also I feel that foreign confidence improved towards China. Thus making more deals possible between China and other nations. As we could see the exports have reached +19% since they have joined the WTO. These facts I feel show that entering the WTO was a good choice for China. As I said in the report China is now rich, has low-cost labour resource and has a vast market. It holds a lot of land where it can retain various sources and has an enormous population. I feel that I had to change the main question from "Discuss and present the ways in which the Chinese business environment will change now that they have entered the World Trade Organisation. (WTO)" to an "have changed". This was done since China has been through the changes it would have, and is facing the pros and cons of its entering. To end I feel that China will be able to become a major global economic player, if it takes right advantage of the situation. ...read more.

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