The Park Place Economist


In 2001, China achieved accession into the World Trade Organization (WTO) after more than ten years of politically charged negotiations. The unusually long negotiation period was an indicator of the controversy surrounding the issue, which remains heated to this day. Since China’s accession, economists and politicians around the world have been watching to monitor the outcome after the five year phase-in period. While China’s economic gains have been significant, and the increase in exports dramatic, China’s accession to the WTO has had numerous negative effects. Some of these negative effects are the adverse impacts on the environment, the disparity in wages between rural and urban citizens, the displacement of neighboring countries’ exports, and China’s increased skill in utilizing the WTO’s loopholes.