Why was joining the WTO such a major step for China?A.A few decades ago, China would not adopt manufacturing.B.A few decades ago, China would not trade with non-Communist countries.C.A few decades ago, China would not allow outsiders to see what it was doing.D.A few decades ago, China would not send representatives abroad.
Question
Why was joining the WTO such a major step for China?A.A few decades ago, China would not adopt manufacturing.B.A few decades ago, China would not trade with non-Communist countries.C.A few decades ago, China would not allow outsiders to see what it was doing.D.A few decades ago, China would not send representatives abroad.
Solution
Joining the World Trade Organization (WTO) was a major step for China for several reasons:
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Opening up to the Global Market: Prior to joining the WTO, China had a largely closed economy. Joining the WTO meant that China had to open up its markets to international trade and competition. This was a significant shift from its previous policies.
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Adoption of International Trade Rules: As a member of the WTO, China had to adopt international trade rules and regulations. This meant that China had to reform its own domestic laws and regulations to comply with international standards.
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Increased Foreign Investment: Joining the WTO also meant that China had to allow more foreign investment into the country. This led to an influx of foreign capital and technology, which helped to boost China's economy.
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Boost to Manufacturing: The opening up of China's markets and the increase in foreign investment led to a major boost in China's manufacturing sector. China became the "world's factory", producing goods for export to markets all over the world.
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Increased Economic Growth: All of these factors combined to lead to a period of rapid economic growth in China. China's GDP grew at an average annual rate of about 10% for the decade following its accession to the WTO.
None of the options A, B, C, D directly answer the question as they do not accurately represent China's situation a few decades ago or the impact of joining the WTO.
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