Changes

China formally joined the WTO in December 2001. As part of this far-reaching trade liberalization agreement, China agreed to lower tariffs and abolish market impediments. Chinese and foreign businessmen, for example, gained the right to import and export on their own, and to sell their products without going through a government middleman. By 2005, average tariff rates on key U.S. agricultural exports dropped from 31% to 14% and on industrial products from 25% to 9%. The agreement also opens up new opportunities for U.S. providers of services like banking, insurance, and telecommunications. China has made significant progress implementing its WTO commitments, but serious concerns remain, particularly in the realm of intellectual property rights protection.  

China formally joined the WTO in December 2001. As part of this far-reaching trade liberalization agreement, China agreed to lower tariffs and abolish market impediments. Chinese and foreign businessmen, for example, gained the right to import and export on their own, and to sell their products without going through a government middleman. By 2005, average tariff rates on key U.S. agricultural exports dropped from 31% to 14% and on industrial products from 25% to 9%. The agreement also opens up new opportunities for U.S. providers of services like banking, insurance, and telecommunications. China has made significant progress implementing its WTO commitments, but serious concerns remain, particularly in the realm of intellectual property rights protection.  

 

While accession does not guarantee smaller trade deficits, full implementation of all WTO commitments would further open China's markets to—and help level the playing field for—U.S. exports. China is now one of the most important markets for U.S. exports: in 2006, U.S. exports to China totaled $55.2 billion, almost triple the $19 billion when China joined the WTO in 2001 and up 32% over 2005. U.S. agricultural exports have increased dramatically, making China our fourth-largest agricultural export market (after Canada, Japan, and Mexico). Over the same period (2001-2006), U.S. imports from China have risen from $102 billion to $287.8 billion.  

While accession does not guarantee smaller trade deficits, full implementation of all WTO commitments would further open China's markets to—and help level the playing field for—U.S. exports. China is now one of the most important markets for U.S. exports: in 2006, U.S. exports to China totaled $55.2 billion, almost triple the $19 billion when China joined the WTO in 2001 and up 32% over 2005. U.S. agricultural exports have increased dramatically, making China our fourth-largest agricultural export market (after Canada, Japan, and Mexico). Over the same period (2001-2006), U.S. imports from China have risen from $102 billion to $287.8 billion.