Business law - chinese trade and investment law Essay

Business law - chinese trade and investment law - Essay ExampleSignificantly, in accordance with the tenet of the balance between rights and duties, once China joins the WTO, China is said to be able to enjoy a most favoured nation status (Chen 2000). Chinas interest in WTO according to Chen (2000) is thus -.the multilateral, stable and unconditional most favoured nation status provided by the WTO members and the achievements gained by other countries and regions from trade liberalization, the participation in the formulation of international trading rules, and utilization of the WTOs multilateral dispute solution mechanisms to safeguard Chinas rights and interestsAccording to the Fact load of the World Trade Organization (2005), the WTO is the only global international administration dealing with the rules of trade between nations. Its goal is to help producers of goods and services, exporters, and importers conduct their business through agreements, negotiated and signed by the worlds trading nations and ratified in their parliaments.Established on 1January1995, and created by the Uruguay Round negotiations (1986-1994), the organization is based in Geneva, Switzerland where 148countries (on 13October2004) are members. It has a budget of 169million Swiss francs for2005 and is now headed by Pascal Lamy as Director-General.The Fact File (2005) furt... Will joining the World Trade Organisation assist or hinder Chinas DevelopmentFrom the perspective of Rao (2001), a Chinese biotechnologist and victuals scientist, yes, Chinas joining the WTO in the long run will assist its development. Speaking before the WTO, he said China is aware that in so doing, some of its house servant nutriment manufacturers will be hurt or damaged, just as others will not be. The Chinese government are also aware there could be initial shocks in agriculture and food industry, but in the long run will be converted into a powerful driving pass for its development.There are two views o ver the past years regarding Chinas accession to WTO the optimistic view and the pessimistic view. The optimistic view reasons that the availability of cheaper supply food ingredients with higher quality after Chinas joining the WTO will give competitive edge to Chinese food industry in the international market (Rao 2001). In addition, the optimists say, Chinas membership will promote the rule of law in the country, undercut state power in controlling the lives of people, and accelerate Chinas transition from a manage economy to a market economy. Chinas entry will also help modernize accounting, banking, legal, telecommunications, and transportation systems of the country, at the same time reduce corruption, favouritism, and local protectionism (Yu 2001).On the other hand, the pessimistic view says freer international trade and investment will strengthen the competitiveness of foreign food business in China, shrinking the domestic market for manufactured foods on account of the una voidable decrease in Chinese farmers income from low productivity. They say this will