WTO reform and improving market access essential

Professor emphasizes the need for China to support the international trade body

China's continuous commitment to upholding a multilateral global trading system is critical to maintaining the foundations of free trade, a leading British academic said.

This commitment to safeguarding the rules-based international order is particularly important at a time of growing international trade frictions, said Christopher Bovis, a professor of international business law at the University of Hull.

"China has tirelessly invested considerable effort and diplomatic support in the reform agenda of the World Trade Organization to make it fairer and more effective, and truly supports the global multilateral trading system," Bovis said.

He was speaking ahead of this year's two sessions, which are expected to set the future strategic direction for China. Supporting a rules-based, multilateral global trading system is expected to be an important topic, especially when China is a keen advocate of globalization and free trade.

In particular, China has increasingly opened foreign access to its market, especially since joining the WTO in 2001. The Belt and Road Initiative proposed by China is also a catalyst to encourage further global connectivity, international trade and investment.

From 2001 to 2017, the accumulated import volume in the goods and services sectors stood at $20 trillion and $3.7 trillion respectively. In the same period, China's outbound direct investment reached $1.1 trillion and foreign direct investment in the domestic market exceeded $1.6 trillion, according to statistics from the Chinese government.

Bovis added that China's effort to contribute toward WTO reforms is critical, especially after the G20 leaders made a commitment to push forward WTO reform during their meeting in Buenos Aires, Argentina, last year.

One key problem facing the WTO is the fact that the appointment process for its Appellate Body - comprising the adjudicators who hear appeals in dispute cases - is blocked due to concerns about the body's rulings and procedures. Bovis said China's efforts to reinforce the Appellate Body are important.

"China pointed out many times the need to reinforce the Appellate Body's independence and impartiality, and to improve its efficiency," Bovis said.

"The current deadlock on the appointments to the Appellate Body has rendered the whole system of multilateralism ineffective and its underlying principle of free trade at risk."

Bovis also praised China's commitment to establishing a strategic collaboration framework with its important trading partners, and further opening up its economy to foreign access in the process.

One example Bovis mentioned is the EU-China 2020 Strategic Agenda for Cooperation, which was initiated in 2016. It is a trade agenda focused on improving market access, promoting reciprocity, ensuring a level playing field, establishing fair competition across all areas of cooperation, dealing with overcapacity and engaging at a multilateral level.

China took bold steps to open up access in sectors such as automobiles and financial services last year.

Bovis praised China's efforts in contributing to free trade and shaping the multilateral trade system, adding that free trade will have win-win benefits for all participants. "Free trade and globalization generate positive externalities on the economy as a whole, increasing the growth potential and the vibrancy of the economic fabric, fostering innovation and training as a result of increased demand for skills," he said.