The Impact of WTO Membership on China's E-commerce

Essay by amyleeinukUniversity, Bachelor'sC, March 2007

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I.China's WTO Accession'Joining the WTO will bring China a great deal of short-term pain. The timetable for dismantling many local protections is brutally swift. With luck, the benefits of membership in terms of new jobs in a reinvigorated economy and of fresh flows of foreign investment will quickly follow.' (Woods, D 1999)After thirteen years of negotiation, the Sino-US agreement on China's WTO entry was finally signed in 1999. (the Economist, 1999) China is a country of big population and trading capacity. It is internationally accepted that the WTO with China's membership will make the globalization more reasonable and healthy. When people celebrate with this historical event of two-win, one problem is inevitable: what effects will bring to China with WTO membership?After opening up the market, the increased import will greatly improve the Chinese people's living standard; China under WTO rules has given its national industries a new start. State-owned enterprises are losing its high tariffs and other barriers; state-owned trading companies are no longer have a lock on imports; Foreign banks, will have more freedom on their operating methods and areas; The telecommunications (telecoms) industry have been open to foreigners; and China's E-commerce, which is to be deeply discussed here, while still in its infancy, has been thrown open to global competitions.

Will it be able to survive through this tempest?II.E-commerce in China1. What is E-commerce1) Definitions and ModelThrough all the information and materials I searched, I fail to find a unique and concrete definition for E-commerce. However, according to my understanding, the various definitions I collected can conclude as: E-commerce is a kind of commercial activity conducted through the advanced information technology, exchanging all the possible information of business, products, sale, service and making electronic settlement through computer network according to the trade protocol and standard admitted by mutual...