An Address at the 10th Anniversary of the World Trade Organization Accession by Naoyuki Shinohara, Deputy Managing Director, International Monetary Fund
IMF News, December 11, 2011
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- Published: December 11, 2011
Overview and purpose
- Speech delivered by Naoyuki Shinohara, Deputy Managing Director, International Monetary Fund, in Beijing, China.
- Occasion: 10th Anniversary of China’s WTO accession.
- Date: December 11, 2011.
- Main themes addressed: China’s achievements since WTO accession; implications for the global economy; outlook and policy priorities going forward.
China’s achievements since WTO accession
- Employment and output growth described as "impressive" alongside deeper integration into global markets.
- Key quantitative summaries:
- "Since WTO accession, the share of merchandize exports has risen by 10 percentage points of GDP."
- "Imports have increased by 20 percent of GDP, reaching 50 percent of total consumption."
- Role of foreign enterprises and foreign direct investment:
- "Since the mid 2000s, foreign enterprises account for more than half of total Chinese exports."
- Stock of foreign direct investment "now exceeds US$1 trillion."
- Attribution: Success highlighted as a testament to "the far-sightedness and steady reform efforts of the Chinese government."
Global implications
- Benefits to global consumers and producers:
- Broader access to consumer products (examples given: "clothing goods and electronics") for the world's growing middle class.
- Foreign enterprises benefited from a growing share of production originating in China.
- The speech emphasizes that much of the world's population "has shared in the benefits of China’s increased integration into the global economy."
Outlook and policy recommendations
- Near-term global environment: described as "looking tougher than we have seen for many years"; "outlook for growth and demand in some of the large economies is likely to remain stagnant for some time."
- China’s capacity to adapt: highlighted via past experience becoming a "manufacturing powerhouse" through "hard work and innovation."
- Recommended policy priorities to sustain and deepen gains:
- Accelerate domestic reforms to raise household incomes and boost consumption.
- Strengthen growth and development of the services sector.
- Implement the comprehensive strategy in the "12th Five Year Plan."
- Provide "substantial support for research and education" to help China "become a source of innovations."
- Put more resources in the hands of households to share benefits with all citizens, achievable through:
- "rising wages,"
- "improved allocation of capital,"
- "financial sector reform," and
- "continued reform of the exchange rate."
- Expected broader effect: Such a transformation "should also benefit the rest of the world as China becomes an even more important export destination for an expanding range of countries."
- Outlook statement: "I am confident that the next 10 years will be bright, with growing benefits to the world from China’s continued integration into the global economy."
Source: An Address at the 10th Anniversary of the World Trade Organization Accession by Naoyuki Shinohara, Deputy Managing Director, International Monetary Fund (December 11, 2011).