China and the Global Economy: National Champions, Industrial Policy and the ... - Peter Nolan. CJE_38. China’s nexus of foreign trade and economic growth: making sense of the anomaly’ Trade Liberalization in China's Accession to the World Trade Organization by Elena Ianchovichina, Will Martin. China's forthcoming access to the World Trade Organization involves reform in many sectors, both domestic and trade-related.
The starting point for reform is a partially reformed economy with relatively high import duties, in which export sectors benefit from liberal duty exemptions on inputs. Both China and its major trading partners will gain from access - with China gaining most (perhaps half of the estimated $56 billion in annual welfare gains). Some developing countries will suffer small losses because of increased competition from China. The adjustments required are greatly reduced by China's dramatic liberalization in the 1990s. Before reform, China's trade was dominated by a few foreign trade corporations with monopolies on the trade of specific ranges of products.