Which promises made when China joined the WTO have not been fulfilled to date?
When China joined the World Trade Organization (WTO) in 2001, it made a series of commitments covering trade, intellectual property rights, market access, transparency, and fair competition. The following are some of the main commitments that have not yet been fully fulfilled:
- Market Access and Tariffs
Although China has reduced tariffs, high tariffs or non-tariff barriers still exist for certain industries, especially agriculture, automobiles, chemicals, and information technology. At the same time, some foreign companies still face restrictions in terms of licenses and quotas, resulting in limited market access.
- State-Owned Enterprises and Subsidy Policies
China promised to limit direct and indirect subsidies from the government to state-owned enterprises (SOEs), but in practice, the government still provides substantial financial support and policy preferences to SOEs, allowing them to hold an advantage in domestic and international markets. These subsidies conflict with the WTO's principle of fair competition, particularly in sectors such as steel, aluminum, and photovoltaics, where foreign companies complain of unfair competition.
- Intellectual Property Protection
Although China has strengthened intellectual property laws and regulations, problems exist in actual enforcement; piracy and counterfeit goods still exist in large quantities on the market, and infringement issues involving technology and brands are particularly severe. Foreign companies often complain that intellectual property protection is inadequate, and technology leakage continues to plague multinational corporations.
- Transparency and Information Disclosure
China promised to provide WTO member states with information on policy changes and to conduct public consultations, but the formulation and modification of some policies and regulations have not been fully transparent, especially those involving trade and investment. This makes it difficult for foreign companies to understand China's market policies.
- Foreign Investment Access and Joint Venture Requirements
Although China promised to open several service industries such as finance, telecommunications, and insurance, restrictions on foreign investment still exist in these areas. Foreign companies face joint venture requirements or high market access conditions in certain industries (such as financial services, information technology, telecommunications, and energy), which weakens their market competitiveness.
- Forced Technology Transfer
Although China denies the existence of forced technology transfer, many foreign companies report that they are often forced to transfer technology in order to enter the Chinese market or operate through joint ventures. This practice is considered contrary to the principle of fair competition and inconsistent with the commitments made when joining the WTO.
- Government Procurement and Transparency
China promised to improve government procurement policies to ensure openness and transparency, but in actual implementation, there are still instances of bias toward local suppliers. When participating in government procurement, foreign companies often face hidden barriers or unfair treatment, making it difficult to compete with domestic enterprises.
- E-commerce and Data Policies
In recent years, China's control over cross-border data flow has become stricter, and foreign companies face compliance challenges regarding data storage and cross-border transmission. Policy changes in China's e-commerce sector have affected the flexibility of foreign companies' operations in China.
These unfulfilled commitments have drawn continuous international attention. The WTO and some member states (such as the United States and the European Union) have repeatedly expressed concern, requesting that China further fulfill its commitments, improve market fairness, and promote policy transparency to achieve true market openness.