Doing Business in China For Dummies®

China and the World Trade Organization

In many ways, China’s entry into the World Trade Organization (WTO) was a historic event that changed many of the old ways of doing business in China. China’s membership defines how China’s market will open to foreign competition in both goods and services and sets out a timetable of China’s commitments. The agreement not only opens China’s market but also puts in place a defined set of rules that’ll make foreign investment and trade more predictable in China.

Here are the two biggest impacts of China’s entry into the WTO:

✓	China must adhere to the WTO’s rules for doing business.
✓	China must open up more businesses to foreign involvement.

For more information on the implications of China’s membership in the WTO, check out China and the WTO: Changing China, Changing World Trade (Wiley). And of course, read on.

Agreeing to play by the WTO rules

The World Trade Organization (WTO), an international organization that helps promote global trade and commerce, defines rules that are designed to help all member countries play fairly in the global market. The WTO has 150 members representing most countries in the world.

When members of the WTO don’t agree with each other, the WTO acts as the official umpire on trading disagreements. The WTO’s mission is to help the global economy go about its business as smoothly as possible. In China, the WTO is trying to make rules for global trade and services clearer for investors and to create a system that’s fair ...