WTO accelerates China’s reform and opening-up process

World
Europe

05:04

December 11 marks the 17th anniversary of China's accession to the World Trade Organization (WTO). China now is the world's second largest importer, and listed among the top three investment destinations around the world.

During the period, China's contribution to the world GDP has more than tripled, taking up nearly 15 percent in 2016. China contains 60 percent of foreign companies, and its foreign direct investment has tripled in 17 years.

Hong Hao, chief China strategist at BOCOM International Holdings in Hong Kong, said accession to the WTO accelerated China's reform and opening-up process.

"Firstly, China removed over 7,000 tariffs on imported items, also eliminated the export subsides. Secondly, it really opened up the Chinese market for foreign firms to operate in this part of the world," Hong said. "And thirdly, foreign firms were allowed to own up to a certain percentage of Chinese firms including firms, including firms in the telecommunication industry and banking industry."

As a result, the percentage of the GDP growth contributed by foreign firms has increased dramatically in the past two decades. Goods imports multiplied by almost eight times to 1.8 trillion U.S. dollars and services imports have grown 10-fold to nearly 470 billion U.S. dollars.

Hong said that China now is furthering its reform and opening up, which allows more foreign firms to enter into the Chinese market.

The China Banking and Insurance Regulatory Commission announced to cancel the foreign ownership restrictions in late August this year.

China always upholds a multilateral trading system. /VCG Photo

Meanwhile, Hong mentioned that multilateralism is the basic rule among WTO countries to trade together. "Multilateralism is good for everybody who participates in the deal, and it is the way for mutual benefits of all parties involved."

China is committed to upholding a multilateral trading system. Under the Belt and Road Initiative, the country is trying to make greater contributions to the world economy.