China joined the World Trade Organization (WTO) in November 2001, marking the culmination of a 15-year long quest to become a member of the global trading body. The momentous occasion represented a major milestone in China’s economic development and opened the country’s markets to the rest of the world.
It all began in 1986 when the Chinese government announced its intention to apply for WTO membership. Back then, there were many who doubted the practicality of China’s ambition – particularly the United States – due to the country’s complex economic policies and its status as a centrally planned economy.
China began the formal process of negotiating its accession to the WTO in 1994 and the following year made an official application, setting off a lengthy series of talks that would last until 2001. This period was characterized by numerous high-level meetings between Chinese and WTO members, debates over which industries would be opened up to foreign competition, and efforts by the Chinese government to gradually transform its economy and make it more compliant with WTO standards.
In July 2001, the process reached a critical juncture when the United States and China signed a bilateral agreement on matters such as market access and anti-dumping policies. This set the stage for the completion of all other negotiations, leading to the signing of a final protocol on November 10th of that same year.
The signing of the protocol marked the formal admission of China into the WTO, ending a long and arduous journey. Now a full-fledged member of the organization, China would have to abide by all WTO rules and regulations, and begin to open up its markets to foreign competition.
The event was celebrated around the world and its ramifications for the global economy would soon be felt. By joining the WTO, China became the first non-market economy to do so, signaling a major shift in the geopolitics of global trade and ushering in a new era of economic cooperation.