China nears end of WTO talks

China is rushing to embrace globalisation

China has said that it hopes to end talks over its entry to the World Trade Organisation (WTO) in January and formally enter the global trade body within months.

"The negotiating partners participating in China's WTO accession talks all have the political will to resolve this issue, so the next round will be very arduous negotiations," said China's chief WTO negotiator Long Yongtu on Thursday.

The next round of discussions in China's 14 year attempt to join the WTO is due to resume early January at the world trade organisation's Geneva headquarters.

After the entry into the WTO, China will loosen import controls, cutting tariffs and reducing trade barriers, resulting in an import surge

BNP analyst Chen Xingdong

The last round, which ended earlier this month, was hailed as a breakthrough by Paul-Henri Ravier, the acting chairman of the WTO working party on China.

"But political decisions are still needed in important outstanding areas," he said.

Final hurdles

Key stumbling blocks include the licensing process which foreign companies have to go through to operate in China - Western countries are concerned that it is not up to international standards.

And there is concern in the West about whether there are enough safeguards in place to prevent cheap Chinese imports flooding Western markets.

China itself wants reassurance that it will no longer be a victim of "anti-dumping" measures - where governments impose tariffs on cheaper Chinese goods to bring their price into line with those produced in Western markets.

No country is hit more by anti-dumping tariffs than China," Keith Rockwell, spokesman for the WTO, told BBC News Online.

"China does not want people willy nilly slapping anti-dumping measures on its products," he added.

Embracing globalisation

China's exports rose more than 32% to $205bn in the year to the end of October, helped by strong sales to Russia, South Korea and other parts of Asia.

Exports to the US were also up considerably, boosted by a flood of Christmas toys and cars, leading to a record US trade gap with China of $9.1bn in October.

But when China finally joins the WTO, it will open up lucrative new Western markets to Chinese exports as never before.

Foreign investors will also have new opportunities to enter a country that until a decade or so ago was a strict Communist dictatorship.

Imports into China itself are also predicted to surge, as barriers fall.

"After the entry into the WTO, China will loosen import controls, cutting tariffs and reducing trade barriers, resulting in an import surge," said BNP analyst Chen Xingdong.

It is estimated that imports from the United States alone will increase by at least 10%.

The total volume of China's exports and imports is predicted to exceed $500bn next year.

China itself has said that it is making preparations for WTO accession in "every walk of life, revising and amending relevant laws, regulations and rules to meet WTO requirements."

The country still has to sign a bilateral pact with Mexico before joining the WTO, although Mexico has said that it supports China's bid to join in principle.