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1、FalsePromises:TheYawningGapBetweenChina’sWTOCommitmentsandPracticesBYSTEPHENJ.EZELLANDROBERTD.ATKINSON
2、SEPTEMBER2015Almost15yearsafterChinajoinedtheWorldTradeOrganizationAyawninggap(WTO)in2001,thevisionofChinaembracingarules-governed,market-remainsbetweenbasedglobaltradesystemhasyet
3、tomaterialize.Ifanything,thecountry’sChina’sWTOcommitmentsanditsaggressiveinnovationmercantilismhasgrownstrongerinrecentyears,astradepractices;onlyChinaseeksabsoluteadvantageacrossawiderangeofadvanced-aconcertedpolicyoftechnologyindustries.ThisreportexaminesthegapbetweenChina’sconst
4、ructiveWTOcommitmentsandpractices,exploreshowtheoriginalproponentsconfrontationcanrestorethebalance.ofChina’sWTOmembershipgotitsowrong,andexplainshowonlyapolicyof“constructiveconfrontation”willproveadequateinaddressingChina’sincreasingly“innovationmercantilist”tradepractices.INTRODU
5、CTIONChinaenteredtheWTOtogreatfanfarein2001,withpunditsandpolicymakersalikepredictingitwouldembracemarket-basedeconomicprinciplesandcommittothecoretenetsguidingliberalizedtradeandglobalization.Andtobesure,ChinadidreformthousandsofdomesticlawsandhascompliedwithmanyofitsWTOcommitments
6、—suchasjoiningtheInformationTechnologyAgreement(ITA)andreducingaveragetariffsonindustrialproducts.Butalltoooften,onestepforwardhasbeenmetwithtwostepsbackward,asChinahaserectednew,oftenbehind-the-bordernon-tariffbarriers(NTBs)tomorethancompensateforconcessionselsewhere.Thesehavemoret
7、hanoffsetChina’s1apparentconcessions.Inmanyothercases—suchasitspracticeoflimitingmarketaccessorconditioningaccessonthetransferoftechnologyorintellectualproperty,oritsongoingsubsidiesforstate-ownedenterprises(SOEs)andexportindustries—ChinahassimplyfailedtofullycomplywithitsWTOaccessi
8、oncommitmentsandmembershiprequirements.ButevenworseisthefactthatChineseeconomicandtradepoliciesTHEINFORMATIONTECHNOLOGY&INNOVATIONFOUNDATION
9、SEPTEMBER2015PAGE1increasinglyrejectorunderminethefoundationaltenetsandprinciplesuponwhichtheWTO,andindeed,globalizationisbased:thoseofnationa
10、ltreatment,nondiscr
