How does an Australian company benefit from China entry into the WTO Essay

How does an Australian company benefit from China entry into the WTO and the Free Trade Agreement between Australia and China a legal point of view - Essay Example According to recent research data, China is found to the 7th largest merchandise exporter in the world, as its exports aggregate amount to $249 billion in 2000. Furthermore China received a direct investment of $46.8 billion, making it one of the largest recipients of foreign investment second only to the United States of America. A point of interest to be taken up here is the fact that China is the only member of the WTO that still happens to be Communist. Even though it is on the path to successful modernization the apparatus of communism is constantly competing for dominance. However it seems that China’s reformation is inevitable and has largely improved and evolved its economy. The transition of China’s reformation process, in the past 15 years reflects its exhaustive efforts for joining the WTO. The accession of China to the WTO perhaps has had the most massive impact on the legal, economical and political framework of the global market. Earlier on members of the WTO expressed concerns on the complete compliance on China’s part with that of the WTO, however on closer examination it appears that incomplete conformity is not due to the fact that China does not wish to obey the obligations of the WTO, this is due to the fact that disaffected groups within the country will intentionally tend to destabilize the framework. International relation experts believe that the enrollment of China as a WTO member is a direct result of the increasing level of cooperation amongst members of the international community. The WTO provides a system of trade that is much more multilateral in nature than previously adopted systems of trade. It is no wonder that the addition of China in to the WTO was welcomed by all the members of the WTO. China is already one of the most influential economies of the world and is rapidly and aggressively competing to become the largest. The addition of China into the WTO is hailed as the opening of the