Home » Expert: The CCP should expel it if it does not abide by the rules of the WTO | International Trade Rules | Developing Countries

Expert: The CCP should expel it if it does not abide by the rules of the WTO | International Trade Rules | Developing Countries

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[Epoch Times December 14, 2021](Interviewed by Epoch Times reporters Liang Yao and Lin Yan) It has been 20 years since the CCP joined the World Trade Organization (WTO). The international community’s condemnation of violating the rules and failing to fulfill its promises has been unprecedentedly high. Experts believe that world institutions such as the WTO should kick China (the CCP) out.

The annual China report of the Office of the United States Trade Representative mentions that China has not complied with WTO rules or fulfilled its initial commitments when it joined the WTO. Antonio Graceffo, an economics professor and China analyst, agrees.

“This is true,” he said. “The terms of the WTO prove that it cannot effectively guarantee that China will become an open and market-oriented trading system.”

Graceford believes that if the CCP does not abide by the rules, it should not join the WTO, and it will not or cannot change it. “Our allies should stop letting them join the organization, or (in order to get them) to abide by the rules. These world institutions We need to kick China (the CCP) out.”

The CCP claims that its per capita GDP is close to high income, but it still wants the WTO “treatment of developing countries”

The CCP recently claimed that China’s per capita GDP is close to high-income countries, but on the other hand, it has told the WTO that China is a developing country. In the past two decades, China has always enjoyed the special and differential treatment granted to “developing countries” under the WTO framework.

These special treatments mainly include: relaxing restrictions on trade subsidies for developing countries, allowing developing countries to use economic and commercial policy tools flexibly, allowing developing countries to extend the transition period, and providing technical assistance to developing country members.

Graceford told The Epoch Times: “China is the world‘s number one exporter, the second economic power, and the third military power. How can they say that they are still developing countries? The renminbi is the five special draws used by the International Monetary Fund. One of the right (SDR) currencies is also the reserve currency of all countries in the world (certainly not a popular reserve currency).”

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He questioned how can China (the CCP) claim to be regarded as a “world leader” while at the same time claiming to be a “developing country”? “If this country still claims to be’poor,’ how can they demand that its currency be used as an international currency?”

In December 2017, the then US trade negotiator Robert Lighthizer made it clear at the WTO ministerial meeting that the issue of the definition of development under the WTO framework should be clarified.

Graceford agreed with Lighthizer. He believes that the WTO lacks a real implementation mechanism to define a developing country or a developed country.

“Countries choose to identify themselves as developing or developed countries. Other countries can challenge this self-designation, just as the United States views China, but like other WTO issues, there is no real enforcement mechanism. In theory, Even if other countries raise challenges, China can still claim to be developing and demand to be regarded as a developing country.” He said.

Confronting the CCP, the United States should gain greater authority and power in the WTO

Graceford emphasized that in the WTO, the United States should also take a strong stance, “If the WTO does not take enforcement actions against China (the CCP), or if it continues to violate the rules, the United States will cut off funding to the WTO or simply withdraw.”

“The United States should gain greater authority and power in WTO decision-making…. In the final analysis, just like the United Nations, WHO and NATO, the United States pays and the United States pays. Out of’fairness’, everyone can Vote, but the United States pays for it.”

He further explained that the WTO is an organization mainly funded and supported by the United States. It stipulates the conditions under which other countries can profit from trade with the United States.

The United States pays 40% more membership fees to the WTO than China or Germany, three times that of Britain or France, and ten times that of most other European countries. But like the WHO, this is not the whole story. The United States also contributes to various funds, initiatives and programs, which makes the United States one of the largest if not the largest donor country.

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The CCP uses “underdevelopment” to evade the WTO’s expectations of developed countries

Milton Ezrati, a contributing editor of The National Interest magazine and chief economist of Vested, a New York communications company, told The Epoch Times that most economies are eager to designate themselves as developed The country, even if it’s just for prestige. The CCP is more willing to use the “advantages of underdeveloped status” to evade the WTO’s expectations of developed economies. This includes tariffs on underdeveloped economies, as well as tolerance for purchases or domestic legislation.

He also emphasized that even if the CCP obtains the freedom of “underdeveloped” countries provided by the WTO, it also violates WTO rules. For example, it insists on requiring foreign companies doing business in China to transfer technology, infringes on patent and copyright protection, and outright. Industrial espionage.

Twenty years after joining the WTO, China has lived up to the expectations of Western countries

The latest report by Politico stated that China has joined the rules-based World Trade Organization, but it has not abided by the rules.

Republican Senator Chuck Grassley, who voted for China’s most-favored-nation status twenty years ago and is still in power, said that although China’s accession to the World Trade Organization will help reduce poverty in China and benefit American agriculture, “obviously This arrangement did not meet our expectations twenty years ago.”

Ezrati believes that China’s accession to the WTO and the trade brought about by China helped many Chinese people get rid of poverty, but at the same time it also failed the common expectations of the United States and other countries at the time, especially with regard to China’s democracy and human rights.

Graceford said that Western countries believe that wealthy people with a good education and a high standard of living will not accept communism. Therefore, they think that if China becomes rich, the people will demand democracy, because economic openness and social openness are inseparable. “But then, Deng Xiaoping, who advocated an open economy, killed protesters in Tiananmen Square, proving that an open economy is different from an open or liberalized civil society.”

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He believes that helping a country develop its economy to make it betray communism is applicable to almost all former communist countries, but China is an exception.

The CCP’s unfair trade triggers a bipartisan consensus in the U.S.-a tough trade policy

Members of both parties in the U.S. Congress have expressed in 2019 that they must adopt a tough strategy to arouse the attention of all parties to WTO reform, and that Beijing’s unfair trade practices must be reversed.

Ezrati believes that the original hopes of Western countries for China’s accession to the WTO were naive, and the views of U.S. congressmen from both parties have also indirectly acknowledged this point.

“Washington and the American public have now reached a bipartisan consensus that we need to take a tougher stance against China (the CCP),” he said.

Ezrati added, “All of Biden’s policies have an anti-Trump (Trump) posture, but he retains all Trump’s tariffs on China. Biden’s trade representative, Dai Qi, insisted that China comply with The agreement signed by Trump.”

He emphasized: “The WTO is not a protective measure against China, because China (the CCP) just ignores its rules and investigation results.”

Starting from December 1, 32 developed countries including the European Union, Canada, and the United Kingdom have cancelled the “Generalized System of Preferences” (Generalized System of Preferences, abbreviated GSP) in which China is a developing country. In addition to the fact that the United States has actually raised tariffs, most Western countries have cancelled the GSP tariff preferences given to China’s exports of manufactured and semi-manufactured products. At present, only Norway, Australia and New Zealand are left, still giving China GSP treatment.

The Generalized System of Preferences is a more favorable tariff reduction or exemption based on the most-favored-nation tax rate granted by developed countries (beneficial countries) to developing countries (beneficiary countries) in international trade. Inclusiveness is different from most-favored-nation treatment (MFN), which is an international trade in which the contracting states promise to give each other no less than the current or future preferences given to any third country.

Editor in charge: Ye Ziwei#

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