Growing frustration during 11 years of China in WTO

Tuesday marks the 11th year of China entering the World Trade Organization, however rising trade disputes over protectionism and domestic subsidies are causing frustrations for China and its trading partners. Some say the growing frustration could lead to more friction within the WTO.

11 years after China joined the World Trade Organization, some say China's WTO ride could get bumpier.

Li Qiuyuan said, "China's efforts to join the WTO dragged on for 15 years, yet the bet paid off for China. The country has become the world's largest exporter and second-largest importer. But at the same time, trade disputes are intensifying, and countervailing and anti-dumping investigations have become a frequent problem for Chinese exporters."

According to WTO data, Since China joined the trade club in 2001, 40 trade dispute cases filed at the organization involved China, with subjects ranging from steel products to renewable energy generation sector. In 11 of these cases China was the complainant. United States filed the largest number of complaints against China and received the most complaints from China.

In addition, China's trade partners have launched 602 anti-subsidy investigations and 510 anti-dumping investigations against China since it became a member of the WTO.

Luo Jun, CEO of Asian Manufacturing Association, said, "These disputes are just part of the process of China being part of the WTO. China, as the world's second largest economy has grown, there are going to be frictions and complaints. But the relationship is maturing, and what's important for China is to find ways to settle the differences with trade partners."

Improving trade dispute handling is needed more than ever.

Analysts suggested focusing on the need to depoliticize trade disputes, and urged a calm and rational handling of protectionist issues as well as prevention of any more serious trade barrier spillover into sectors such as investment, services or finance.

Chen Yuan, chairman of China Enterprises Investment Assoc., said, "Having Chinese economy become internationalized and at the same time allowing world economy merging into Chinese economy have great significance, the cooperation is not limited to trade, but could expand to many other sectors that could benifit both China and its trading partners."

In the midst of rising trade disputes, China's decision makers have pledged to build a fair, stable and transparent investment environment for domestic and overseas businesses, reduce government intervention in micro-economic activities, and enhance protection of intellectual property rights.

Following an initial steep learning curve regarding international trade law processes since joining the WTO, China is now working on implementing a more proactive opening up strategy.