The need to tread carefully

The need to tread carefully

The fact that China has accepted these and other obligations in the framework of the WTO does not necessarily mean that China will have an impeccable implementation record. As discussed in Chapter 1.3, China certainly has the political will to implement its obligations in a serious manner. At the same time, it is generally acknowledged that China has made ambitious commitments and that there will be short- term conflicts and difficulties.

The type of legal discussions that tend to occur in the WTO may well appear entirely novel to Chinese government circles. It has taken a number of EU Member States a long time to fulfil their EC obligations to set up an independent telecommunications regulator that effectively safeguards competition and curtails the incumbent operators. Clearly, one cannot expect such a process to run any smoother in China where the concept of pro-competitive regulation is entirely new.

The time it will take for China to implement its promises will also most certainly depend on the health of the Chinese economy. A blooming economy would give China the incentive to allow more foreign competition whereas an economic downturn would probably encourage further protectionism.

Consequently, business will need to remain careful and diligent when planning to make use of China's accession to the WTO. The impact on China and the potential for business are clearly enormous . It is rare, however, for such sweeping changes to take place entirely smoothly.

Craig Pouncey is experienced in all types of trade and WTO law as well as European Union and UK competition law, including Articles 81 and 82, State aids, monopolies and mergers. He deals regularly with the European Commission and the UK Competition authorities in major cases, including notifications of agreements and complaints about anti-competitive conduct.

Lode Van Den Hende was among the very first private lawyers who were allowed to appear in a WTO dispute settlement hearing and has been involved in a number of high-profile WTO disputes between the EU and the US. He has advised on all types of WTO law, and the General Agreement on Trade in Services in particular.