The challenge of Entry WTO To China¡¯s Whole Industry

China has a lot of promises to honor after entry the WTO, such as lowering the tariff level, canceling 400 import quotas, and allowing foreign companies investing into our telecommunications, banking, insurance, and tourism sectors. The Chinese government will also relieve the red tap for both the Chinese and foreign companies to do business in China.

The first challenge is the sharp competition brought by the foreign companies. Lowering tariff level, reducing quota, and relieving red tape means domestic companies lose the price superiority. Enormous amount of foreign companies will flow into Chinese market. Many famous big companies with good reputation and long history provide high level of services and products with lower pric...