China Joins the World
WTO accession, the Beijing Olympics, and China's integration into the global system — on its own terms.
WTO Accession (2001)
China's entry into the World Trade Organization in December 2001 was a watershed moment for the global economy. After 15 years of negotiations, China agreed to reduce tariffs, open markets, and abide by international trade rules.
The Western bet — articulated by President Clinton and others — was that economic integration would inevitably lead to political liberalization. 'By joining the WTO,' Clinton said, 'China is not simply agreeing to import more of our products; it is agreeing to import one of democracy's most cherished values: economic freedom.'
This bet has not paid off as expected. China did open its economy significantly — trade as a share of GDP soared, and China became the world's largest exporter. But the expected political liberalization never materialized. Instead, China demonstrated that a one-party state could successfully integrate into the global economy while maintaining authoritarian political control.
The 'China shock' — the impact of Chinese imports on manufacturing employment in the US and Europe — became a major political issue. Economists estimate that competition with Chinese imports cost 2-2.4 million US manufacturing jobs between 1999 and 2011.
