China and the WTO: Implications for the Environment
Shawn Steil
The United States congress recently granted Permanent Normal Trade Relations to China, and opened the door for the Asian country's entry into the WTO. Proponents of PNTR, such as President Clinton, claim that economic liberalization in China will be followed by political and environmental reform. Opponents claim that the there are no mechanisms to ensure China will improve its environmental record, but on the contrary, is likely to allow further deteriorations for a competitive edge. The paper explores the risks and opportunities presented to China's environment by its impending entry to the WTO, and will provide recommendations for ensuring that environmental performance in China is not sacrificed for economic output.
China will bring with it a unique historical, political, economic and environmental character into the WTO. The nation's state of the environment is explored in terms of the context: featuring problems in air quality, water supply, and energy use, and the growth of small polluting enterprises and regional differences in the transition to a market economy; the commitments to international environmental agreements and local capacities for environmental protection and management. An analysis of the risks and opportunities for China's state of the environment as a result of WTO entry is followed with a set of recommendations for facilitating technology transfer and capacity building in tandem with liberalized trade in China, as well as for the improving the WTO's capacity for dealing with environmental impacts in developing nations.