Conclusion

After China's WTO accession , most of the non- tariff barriers that used to provide protective shelter for domestic industries and foreign trade companies will be removed. Also removed are the subsidies for the purpose of encouraging exports. China's market will be opened up for foreign participation to a much greater extent, thereby offering significant market possibilities for foreign businesses to do business with China.

Generally, the pattern of China's foreign trade will be reshuffled and foreign trade companies will need to reposition themselves under the regime of the WTO. In the battlefield of imports, foreign businesses will be engaged in head-on competition with the Chinese enterprises in China and it is too early to conclude who will win.

In terms of exports, more Chinese companies will join the team of exporters and the role played by foreign trade companies as intermediaries will weaken as a result. Horizontal or vertical integration is likely to take place as alternative strategic options for foreign trade companies. Participation of foreign players in the field of foreign trade will lead to competition for export resources and foreign markets.