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China's Accession to the World Trade Organization

This is a research project for a Master’s (Business) level class. The question asked regarding China’s Accession to the World Trade Organization is the following: “Has China’s accession to the World Trade Organization (WTO) been a positive impact on the flows of foreign direct investment (FDI) to China?”

You need to take a position; for example, your hypothesis may be that YES, since China joined the WTO, the flows of FDI to China have increased, because it is now easier to do business there. Companies are interested in going there, because of the great market potential, increasing incomes of consumers; plus, it is cheaper to operate a business in China due to cheaper labor. You need this research to be very analytical, as many research paper writers remind that you should not just present the facts, but what do they mean, what are the implications of the data to American businesses and businesses worldwide.

Needs to present the trends of companies going to China (has the number increased?); present qualitative information:

  • Why are companies going to China?
  • Is it because of the WTO?
  • Which companies are going (give examples), from which sector(s) mainly (from services, manufacturing, etc.).

Need to use many different sources for China’s Accession to the World Trade Organization Term Paper:

China’s Accession to the World Trade Organization
  1. Not limit the project only to Internet searches;
  2. Use to use books
  3. Current magazine articles
  4. Organizations and government’s information (in this case publications from the World Trade Organization)
  5. Statistics
  6. Companies’ qualitative information (for instance, why they decide to go to China, what was their reasoning?).

Outline for China’s Accession to the World Trade Organization Term Paper:

  1. Introduction
  2. GATT / WTO (this section is very brief)
  3. Background on China & trade/FDI
  4. China’s accession (why did China join? reasons? Conditions for entry (what commitments did China make to join)
  5. Changes the accession to the WTO has brought to China and the rest of the world (increased trade, etc)
  6. Foreign Direct Investment in China (MOST IMPORTANT PART OF THE RESEARCH)
    • Trends, has it increased?
    • Which companies are going to China? From which countries primarily? From which sectors? (as specific as possible)
    • Why are they going? Is it because of China’s accession to the WTO? What other reasons exist?
  7. Conclusions – was the hypothesis correct? How do I see FDI flows in China in the next few years? Will it increase or decrease?, etc.

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