Tuesday, March 19, 2002

Kriengsak Chareonwongsak the World Trade Organization (WTO)

Last year China was the seventh largest exporter in the world, and the eighth biggest importer. Significantly, China is tipped to be one of the few countries that will be able to sustain its economic growth in the short term.

The country's admission into the World Trade Organization (WTO), formalized on November 12, 2001, will unlock a treasure trove of trade opportunities for many regions, including Thailand, while Beijing will play an important role as the representative of developing countries in bargaining on the world trade stage.

Moreover, as China's foreign policy is based on peaceful coexistence, both at home and broad, to ensure economic stability, the country's development is inextricably linked to that of other Asian countries.

This nexus can be seen from the economic crisis that broke in Asia in mid-1997, with Thailand being the first victim. The US alone was not able to assist the country, rather it was left to the International Monetary Fund (IMF) to put together a rescue package. A key element of this was the approximately US$1 billion that came from China.

Further, with regional currencies in a downward spiral, Beijing resisted the temptation to devalue the yuan, which would have placed increased pressure on the competitiveness of exports from Asian countries.

All roads lead to China

Professor Dr Kriengsak Chareonwongsak
Executive Director, Institute of Future Studies for Development (IFD)
kriengsak@kriengsak.com, http://www.ifd.or.th

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