China, WTO and developing countries – A constructivist analysis

Year 2004, Volume: 9 Issue: 1, 13 - 28, 01.04.2004

Mohammad Tanzimuddin Khan

Abstract

China’s recent accession to the World Trade Organisation WTO has raised both hopes and fears for developing countries. The hopes emanate from its economic clout and the desire for leadership. In many official statements, China has supported developing countries’ struggle to survive in the global economy. On the other hand, the fears appear from an economic rationale. Developing countries’ products, having similar export destinations and the same comparative advantage, mainly involving a cheap labour supply are in potential danger since China is now able to use WTO rules to entice foreign investment and ensure the access of its products to foreign markets. Against this backdrop, this paper argues that it is unlikely for China to assume leadership in the WTO along traditional ‘north-south’ or ‘developingdeveloped’ divisions. The ‘developing country’ status of China in the WTO would definitely offer other developing countries some structural advantages in participating and influencing the outcomes of global trade negotiations. In effect, there would probably be some institutional implications for the developing countries, spinning off their commonly shared interests. However, the argument is based on the theoretical underpinning of a constructivist approach, which incorporates assumptions on interests, identity and ideas in studying international regimes