As WTO practices come into China, the country's economic structure has been undergoing dramatic changes. How does China's WTO membership affect the lives of its ordinary citizens?
A very little girl, Yipeng, wasn't aware of what was going on in China when she was born on December 11 last year. That's when China joined the World Trade Organization. Her parents regard her future with a mixture of hope and envy. Yipeng will enjoy advantages they never had, perhaps a ride in a family car. Her father says as individuals, the family benefits from the membership, because owning a car is now within their means.
"Since China has joined the WTO, tariffs on imported cars have come down a lot. We can afford one if we don't have to pay extra tax," said Lu Ruian, Yipeng's dad.
Prohibitive tariffs once limited owning a luxury car to the very rich. China's WTO commitment requires the country to drastically lower car import tariffs over the next five years. On January 1 this year, the tariff for cars with engines less than three liters was lowered from 70 percent to 43.8 percent.
An affordable automobile is just one example of the benefits citizens derive from WTO membership. In other fields, such as the financial service sector, international companies are entitled to a level playing field with their Chinese counterparts. This is inevitably improving service quality.
But changes brought by WTO membership aren't welcomed by all. Many are feeling the pain. Conforming to the organization's standards is proving difficult for some and perhaps impossible for others.
Chinese farmers, who account for 80 percent of the population, are taking the brunt of the blows. Corn, wheat, and cotton are the hardest－hit sectors. The price of these crops is currently 10 to 70 percent higher than the world's average. The influx of cheaper produce is threatening the livelihood of Chinese farmers.
Apart from that, there will be 3 to 4 million jobs that will go in the short term, according to the estimate of the Chinese Academy of Social Sciences. But again, there will be 2 to 3 million jobs that will be created annually in the long term.
"In the short－term, there will be adjustment problems on the unemployment issue. But over a long－run, as economy grows, the problem will be solved," said Zhao Yaohui, associate professor of Economics of Peking University.
As China marks its first anniversary as a WTO member, Yipeng celebrates at her own one－year－old birthday party. Her parents hope WTO membership will help create a better life for their daughter and the rest of the new generation.
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