Globalization and World Trade Organization Essay

Often perceived as the strongest instrument of orbiculateization and supporter of scotch liberalism, the other(a) facet of the universe merchandise Organization brings its existence as an adamant global regime. For the concerned intellectual, Debi Barker and Jerry Mander have called WTO as a form of Invisible Government in wholeness of their publications for the International fabrication on Globalization (IFG). chinaw atomic number 18 and Globalization Behind chinas ready reaction to globalisation with full potential of leading the global economy, thinkers consider an aspiration to supplant the existing super power of the area. still for china, globalization is a double boundary lined sword since it brings forth both the threats and saves for earthly concerns fastest growing economy. According to Peter Drysdale, it is because of chinawares access to the global grocery that it has reached the first rank among the development countries of Asia. Exposure to alien g rocery store free of trade barriers has provided with a phone number of opportunities to enhance the business circle of Chinese companies. In a be of two decades starting from 1978 to 1997, chinaware doubled its status in scathe of its capital gains by elevating to the tenth position from the twentieth rank in the worlds economy.This fact suggests that chinas excel in the international trade does not completely depend on its influence in the WTO. In fact the terra firma had embarked its way towards economic pre-eminence vast before joining WTO. This means that mainland Chinas success though boomed by WTO had its very beginning with the economic globalization. Attitudes of Chinese towards Globalization ripe like any other existing phenomenon in the scene of homo existence, globalization cannot be confined in a single stray of thought and any rigid point of view and makes it a matter of perception rather than rationality.With both the negative and coercive impacts of glob alization for China standing clear, there atomic number 18 three types of attitudes existing among good deal regarding the relentless process of globalization. According to Charles Andrews, there pile advocate and party favour one of the three stands namely, Pro-globalization, Anti-globalization and Reformist Approach. 1 Pro-Globalization The first group of people apply a positive view of globalization for China by measuring the sylvans success in impairment of strengthen economic position in the global market and change magnitude science of the world about China.Lin Yifu, a professor of economics at the University of Beijing, is among much(prenominal) people who vision no challenge of globalization to China. Pro-globalists involve a group of liberal minded people who condones the risks of globalization in favour the opportunities it has provided. 2 Anti-Globalization Contrary to pro-globalization, Anti-globalization rejects every bright angle of increasing globalization. It is because integrating is a two way process. When China permeates foreign countries, these countries are every bit permitted to invade Chinas domestic market.As many fruits and cereals are cheaper in the global market as compared to that of Chinas, when the exporters of these goods invade China they leave the country men (whose livelihood depends on the agriculture) at the edge of starvation Apart from such risks, the anti-globalists likewise take an account of translational terrorism by cross-border criminal activities and the proliferation of weapons. Certain events of recent past also favour such allegations against globalization.It s because of the cross border criminal activities and chaff that events like 9/11 trampled one of the most lucrative economic centres of the world. Anti-globalists belong to various walks of life with their opposition to globalization in terms of their field. For instance, many linguists across the globe talk about linguistic genocide and the overwhelming role of English as a lingua franca which is make the death of many regional languages. In in short, for the group of people who are propelled to anti-globalization, globalization is nothing but a trap.Jumping into this trap would conk out the whole domestic persistence, agriculture, and service sectors. 3 Reformist Approach The reformists hold a balanced point of view towards globalization. With an over all positive attitude towards globalization, they believe that while the advantages of globalization are long term, the short term threats of globalization for China cannot be ignored. For them, at one clear globalization means increase monetary gains, growth of domestic industry by competition with foreign companies and aggrandizing compatibility of China with the global community.At the other hand, they also bring under consideration the issues like growing unemployment as a result of declining industries face up foreign competitions and by widening the porta between classes by further lowering down the farmers and other such people to a still lower status. The threat to the farmers livelihood is clear in China that has over-emphasized the manufacture of non-agricultural products in the excite of the last few years. Consequently, innumerable farmers of China were left with their decline resulting from unemployment.China and World Trade Organization The progressive integration of China into the world trading system- spurred by its rank of WTO in 2001- has provided China with secure, break and inevitable export markets. According to the economists, behind the rapid rise of China in the global economy lies one key factor the entrance of China in the World Trade Organization. The economic and financial analysts of global market base this opinion on the foundation that the major boom of China occurred by and by 2001 (the time when China joined WTO).In the words of David Dollar, the World marge country director for China, Since China jo ined the WTO, its exports have braggart(a) at an average rate of 29 percent per year. It was in celestial latitude 2001 that China (the sixth largest economy with a population of 1. 3 million at that time) joined the World Trade Organization. Previously China had remained one of the twenty three contracting countries of the General Agreement on Tariffs and Trade (GATT). Impacts of WTO rank and file on Chinas Economy After its membership of WTO, Chinas trade rate increased rapidly from 44% to 72% in 2006.It was after a foresight into the future that China compromised on a number of WTO policies in order to enter into the WTO. These were the conditions that on the face of it conflicted with Chinas economy. According to Gregory C. Chow of Princeton University, three most prominent conditions for China included 1. Declining the tariff rates on the import of goods from foreign countries. 2. Being conducive in the practice of free trade by letting the foreign companies sell their pr oducts directly in the domestic market of China.3. Establishment of improved telecommunication and finance industry for the sake of increased competition. Contrary to the analysts expectations, both Chinas macro economy and little economy did not suffer a set back after its entrance into the WTO since the net results proved to be favourable thereby compensating the meager amount of losses. With a rapid growth of Chinas exports, its increasing imports do not appear to be a threat for the countrys economy. Impacts of WTO membership on ChinaChinas acceptance to become the member of the World Trade Organization was not merely a matter of flourishing its economy but a reason for a series of the countrys aims. According to Wayne M. Morrison, China motto a potential of playing a major role in trade laws of WTO and indirectly practice an economic hegemony. In the contemporary world with flourishing business and finance, the economic stability is often seen as a measuring stick to mark th e countries over all power.So, Chinas increasing economic strength does not only suggest its financial stability but its potential to become the super power in future. Morrison also believes that another major goal of China behind the membership is to maintain the status of Most Favored Nation and permanent ruler trade relations. Even if the World Trade Organization holds a nasty policy for equal treatment of all nations, the bigger nations with their dominating mien somehow benefit as compared to the under developed countries.Previously, these privileges were dominantly celebrated by the U. S. Impact of WTO membership on China Banking Industry It is the overwhelming perfume of WTO membership that it has left not a single institution of the country untouched. With almost seven years of WTO membership and business people facing free trade, Chinas financial sector is now open to foreign banks. This has exposed the customers to a number of innovative and improved centering mechani sms and services.In the words of Wang Zhaoxing of the China Banking Regulatory Commission, The introduction of competition and strategical investors will be conducive to improving innovation, management and profitability of domestic banks. With considerable involvement of foreign banks into China, Chinas leading banks including the Bank of China, China Construction Bank and the Industrial and Commercial Bank of China have emerged as trusted names in the international banking. Although coming into court as a threat for smaller banks, such a scenario is super favourable for a Chinese customer because in either way, they would contract better services.