China's Entry Into the World Trade Organization (Routledge by Peter Drysdale, Ligang Song

By Peter Drysdale, Ligang Song

This quantity offers a close updated research of the strategic matters and coverage thoughts of China's accession to the WTO. Quantitative research demonstrates how tariff aid due to China's accession to the WTO will profit the chinese language economic climate in addition to the remainder of the realm. The booklet argues that there's no unmarried exchange coverage initiative more likely to lead to greater profits in overseas alternate within the foreseeable destiny than China's accession to the WTO.

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Extra info for China's Entry Into the World Trade Organization (Routledge Studies in the Growth Economies of Asia)

Sample text

In most cases, non-state enterprises had to pay market prices for inputs, and their products were sold at market prices. 24 Therefore, the technological structure of non-state enterprises was more consistent with China’s comparative advantages. The entry of TVEs mitigated the structural imbalance caused by the HIODS. CHINA’S ENTRY TO THE WTO 41 Macro-policy environmental reform Of the elements of the traditional economic structure, the distorted macro-policy environment was linked most closely to the development strategy, and its effects on allocative and technical efficiency were indirect.

Government agencies controlled the circulation of their products. Wages and salaries of workers and managers were determined not by performance but by education, age, position and other criteria, according to a national wage scale. Investment and working capital were mostly financed by appropriations from the state budget or loans from the banking system according to state plans. State enterprises remitted profits, if any, to the state and the state budget covered their losses. In short, state enterprises were puppets.

By that time, 45 per cent of the collectives in China had already been dismantled and had instituted the household responsibility system. By the end of 1983, 98 per cent of agricultural collectives in China had adopted this new system. When the household responsibility system first appeared, the land lease was only one to three years. However, short leases reduced farmers’ incentives for land-improvement investment and lease contracts were extended up to fifteen years in 1984. In 1993, the government allowed the lease contract to be extended for another thirty years after the first contract expired.

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