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The story of how China joined the World Trade Organization (WTO) is, on one level, a simple one: the advanced nations, led by the United States, let China in once they felt its economy had reformed sufficiently to meet WTO requirements. On another level, the technicalities of the bilateral and multilateral negotiations were by no means simple. China was too advanced in some sectors for WTO member countries to be comfortable giving it developing country status, which brings with it loose timetables and "differential and more favorable treatment" for meeting WTO obligations. (1) But China was also not a developed economy by most measures, as its delegation insisted. Hence every aspect of China's entry has been carefully negotiated, adding to the time it has taken for its application to be completed. In the end, the full protocol incorporated thousands of lines of tariffs and specific agreements, covering approximately 1,500 pages (O'Neil, 2001). (2) Another piece of the story is that certain leaders in China championed this cause unflaggingly. In particular, key members of the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) believed strongly in China formally re-joining the international economy. Premier Zhu Rongji, who has a reputation as a reformer, was a key supporter and probably the main reason the issue was kept alive. The Republic of China (Taiwan hereafter) had been an initial member of GATT when it was formed in 1948 but then resigned in 1950 in the aftermath of the civil war and the move to Taiwan (Tucker, 2000). The People's Republic of China (China hereafter) applied to regain its seat in 1986. The final chapter was not written until November 11, 2001, when the WTO trade ministers gave formal approval for China's membership at their annual meeting, with Taiwan's approval following a day later.

This article analyzes the process and probable effects of China's entry into the WTO from several different angles. The prospect of China's membership has been controversial, both within China and in the international community, slowing the process considerably. A key factor pushing China's application forward has been China's significant move toward a market-oriented economy in the 1990s. However, adapting to the negotiated WTO package will be only part of the major changes China is likely to experience in the coming decade.