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Strategies & Market Trends : Asia Forum

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To: Metalguy who wrote (9960)	12/14/2001 12:08:42 AM
From: CIMA	Read Replies (1) of 9980

WTO: A Political Tool for China? December 13, 2001 Summary China has entered the World Trade Organization by threatening to sue Japan over certain import restrictions. At the core of the move is Beijing's desire to use the WTO not only to modernize its economy but also as a political tool against regional rivals India and Japan. Analysis China officially joined the World Trade Organization on Dec. 11. Beijing immediately threatened to sue Japan in the trade organization over import restrictions on shiitake mushrooms, the BBC reported. Because the case would cover only mushroom exports, its direct economic implications are minor. But it is becoming apparent that Beijing sees the WTO as a political tool as well as an economic grouping. Bringing a case forward should not only allow China to protect its economy a bit longer but also help it isolate its two regional adversaries: Japan and India. Expanded Chinese power would have dramatic consequences for East Asia, where Japan and India both act as substantial checks on Beijing's ambitions. If China uses the WTO to lessen their influence, Southeast Asian states such as Indonesia and Thailand could find it nearly impossible to remain beyond China's orbit. Related Analysis: New WTO Talks Too Ambitious China and the Wal-Mart Effect Beijing’s Balancing Act: Economic Aspirations and Internal Unrest -------------------------------------------------------------------------------- Note: this is an abbreviated version of a full-length STRATFOR report previously seen by our Members. To access STRATFOR's complete range of in-depth, objective intelligence and analysis on the globe, including our award-winning daily full text and graphics reports, click here and become a Member today!

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