Premium
How Important is APEC to China?
Author(s) -
Yang Yongzheng,
Huang Yiping
Publication year - 1999
Publication title -
australian economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 15
eISSN - 1467-8454
pISSN - 0004-900X
DOI - 10.1111/1467-8454.00060
Subject(s) - china , accession , openness to experience , liberalization , international trade , international economics , business , free trade , economics , european union , political science , market economy , psychology , social psychology , law
APEC is an important forum for China to show its commitment to economic openness. Concerted trade liberalisation in the APEC region reduces the adverse terms of trade effect of China's own trade liberalisation. These help maintain the momentum of reform by reducing domestic resistance. APEC is not a stepping stone to WTO membership, but it gives China an opportunity to rally international support for its early entry into the WTO. However, APEC cannot substitute for WTO membership. This is not only because the WTO framework provides greater security for market access for Chinese exports as well as potentially larger gains to the Chinese economy, but also because it imposes legal bindings on China's trade policy once it becomes a member. In facilitating China's trade liberalisation, APEC and the WTO seems to be mutually re‐enforcing. APEC prepares China for the WTO and the WTO accession pushes China to go along with the APEC process. Both APEC and WTO accession push forward domestic reform.