CHINA-ENTERING WTO ' S BENEFIT AND RISK1. In the last 15th November, China Trade Minister and u. S Trade Representative have signed the deal of China's entering WTO. It is clearly that China has merely no other choice at the moment. The economy is wobbly, slow growth rhyme and unemployment has reached 2 numbers. Foreign investors are withdrawing capital out of China due to their unbearable of complicated bureau procedures. China needs the WTO to make a reform.2. However, the China-u.s. deal of getting a way for China to enter the WTO can not bring a sudden magic in the blink of an eye. Still, this deal plays an important role in China's process of opening market after undeveloped decades. Although knowing that catalytic continuous would enclose with damages, Chinese authorities still acknowledge the inevitable benefit. 3. As estimated, entering the WTO would bring China an annual investment of 100 billion dollars and help to faster the economy's growth by 1% due to increasing efficiency, measures, and exportation. Companies, which fields are high-tech and bio-tech, will be prosperous. In 5 year, textile manufacturing industry can create more employment of 5 million, while services of 2.6 million and construction industry of 1 million.4. However, whether China can reach this growth or not depend on their seriousness in making their commitments, and also the investors ' belief of this country's innovation ability. The China-u.s. deal required China to open many fields including telecommunication, internet service, banking, stock market and distribution network. Beside, China has to cut off the import tax from 22% down to 17% and end the export subsidies.5. it's the first time ever that West company can sale their product directly to Chinese consumers. Nowadays, computer producers are facing trouble with several components ' quota and tax, and also the problem in distribution. Now, with the deal with the WTO, companies can think of widening their business.6. American farmer can hope, too. China will have to end export subsidies and cut off farming product taxes. However, the situation is not very positive with Chinese farmers and producers. Entering WTO may lead to an extreme distance between winners and losers. Many companies which major fields in heavy industry, such as metallurgical and petrochemical, would be in risk of bankruptcy when no more trade barriers would be there to help them out like before.
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