When we think about China and the world economy, we tend to think about manufacturing. But China is also the tenth largest exporter and eighth largest importer of commercial services worldwide. That makes China by far the largest player in world services trade among developing countries - not to mention a larger services trader than Canada, Korea, or Switzerland.
And it shows the incredible speed with which China's economy can adapt and capitalize on new products and markets. The trading relationship between the United States and China is critical to the economic success of both. The United States is China's fourth largest trading partner.
China is the United States' third largest trading partner. But bilateral trade and investment are only part of a much larger picture. It has improved standards of living and helped lift millions out of poverty all over the world. When countries reduce tariffs, eliminate non-tariff barriers, and commit to a rules-based trading system, their economies grow.
Nowhere has that been demonstrated more dramatically than here in China. I have always believed that an economy as large and dynamic as China's needs to be a full participant in the multilateral trading system. That is why I fought hard to get the U.
Now, two years into China's membership in the WTO, it is even clearer to me that China will play a pivotal role in the continued development of the world trading system. As a large developing economy that has made -- and continues to make -- historic strides to open its market, China can be a real leader in demonstrating to the developing world the power of trade liberalization to transform economies. I hope that China will accept this responsibility andbegin to play a major role in shaping the contours of the world trading system, now and into the future. The accession package includes nearly individual commitments to make legal reforms.
It includes commitments to liberalize market access for more than goods and 9 broad service categories, and to eliminate non-tariff barriers on about products. Although much remains to be done, much progress has been made.
China's WTO Accession Reassessed
I want to be sure to give credit where credit is due, because I know how big a task this is. And changes this far-reaching don't happen overnight. By and large, I think the United States Government and the American business community realize how much China has already accomplished. Certainly the large and growing level of U.
Comments on WTO Case on Chinese Semiconductors
Still, more challenges lie ahead. Businesses constantly reassess their positions and seek out those countries with the best investment climates. They will look for countries that protect real and intellectual property rights, provide legal transparency, and play by the rules. That is why it is so important that American - and other - businesses see China engaging constructively when problems come up.
Building on such a broad-based and mutually advantageous trading relationship takes constant work. More broadly, trade needs to be a two-way street. Some of my colleagues in Congress look at the bilateral trade imbalance and argue that trade restrictions are needed. They look at the undervalued Chinese currency and propose punitive actions.
I don't subscribe to that point of view. Using China as an example once again, proponents of the free trade model argue that China has a competitive advantage in wage rates that makes it ideal as the global manufacturing center that it has become. While China has been appreciating its currency, it has a long way to go to bring it to equilibrium levels.
The weakened U.
S imports. Europe, Canada, and other countries with freely floating exchange rates face comparable trends in their trade relationship with China. For example, Canada fosters oligopolies and in some provinces, monopolies that restrict both foreign trade and internal trade. In addition, most countries have value-added taxes that are rebated on their exports to the United States, while our exports receive no such treatment because our federal tax system relies on income and corporate taxes.
While these restrictive policies have little or no effect on our free trade agreements with many of the smaller economies, they do have a significant negative impact on our agreements with the larger economies. Once again, multinational companies and financial institutions and their think tanks will lead the charge since they would be the primary beneficiaries.
Before we blindly accept trade agreements that will simply result in lost jobs, the next administration needs to also comprehensively address the disparities in international monetary and competition policies that prevent our trade agreement from delivering the results that Main Street was promised and deserves. Who Benefits? Facts belie this belief.
- Will China Liberalize Its Grain Trade?!
- Sen. Baucus Speaks at the WTO Institute in Shanghai, China;
- Idomeneo, rè di Creta, Act 3, No. 20 Sio non moro a questi accenti - Full Score.
- AAPD 2011 SF Review Course Manual.
Likewise, the United States wins a greater percentage of the cases brought against it than most. By acting unilaterally in violation of our WTO obligations, the United States will flip the script in this case: we will be the global scofflaws in the eyes of the world, not China.
China’s Rise, the U.S., and the WTO
For about 70 years, the United States has been the primary architect and beneficiary of the global rules-based trading system. Consequently, we have a special obligation to protect this system. Taking unilateral efforts to address allegedly abusive or unfair trade practices jeopardizes the WTO, which has served to promote peace and prosperity around the globe.
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- China's WTO accession reassessed / edited by Wang Luolin | National Library of Australia!
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The Trump administration should tread carefully as it considers approaches to address Chinas trade practices. May 15, Download PDF. Sep 24, Sep 23, Sep 22,