China has taken important steps to address its air quality problem through its war on pollution, which has produced some important successes. They Context:As China is considered as a developing nation in WTO,the President of the U.S has accused it of taking advantage of the US and other countries through the medium of WTO.. China in WTO. China’s developing country attributes will have dramatic domestic and international impacts, including on global energy demand, government strategic choices in managing the energy sector, and greenhouse gas (GHG) emissions. The United States has never accepted China's claim to developing-country status, and … Evaluating China’s development status is not just an academic exercise. See Sabine Alkire and Maria Emma Santos, “OPHI Working Paper No. And yet, the WTO still considers China a “developing country,” and Beijing insists on maintaining this status at the Geneva-based institution. Its interest in ensuring the security of its energy imports and overall energy security will affect its deployment of commercial, financial, diplomatic, and military assets. China had previously been the world’s largest GDP up until 1870, when the U.S. surpassed it. membership. It has become a superpower, an economic and energy behemoth with an ever-growing global influence that in various domains approaches and even exceeds that of the world’s other superpower, the U.S. [4] For example, China’s life expectancy rose from 69 years in 1990 to 76 in 2017. (b)  Within 60 days of the date of this memorandum, the USTR shall update the President on his progress under subsection (a) of this section. Pollution, especially the poor air quality largely attributable to China’s energy sector, is one of the most visible manifestations of its developing country character. These characteristics include heavy reliance on coal in the power and industry sectors, which frequently lack adequate pollution control equipment; the rapid growth of cars and trucks in densely populated urban centers; large-scale construction projects; damaging agricultural practices; and deficiencies in regulatory enforcement. For example, electricity generation capacity, which increased from 319 GW in 2000 to 1,870 GW in 2018,[55] is expected to double by 2040,[56] which will require massive investments in additional power plants. The debate on developing country status, referred to among WTO members as “differentiation”, is bigger than a bilateral issue. Compilation and Translation Bureau of the Central Committee of the Communist Party of China, “The 13th Five-Year Plan for Economic and Social Development of the People’s Republic Of China, 2016–2020,” accessed December 31, 2019, https://en.ndrc.gov.cn/newsrelease_8232/201612/P020191101481868235378.pdf. In the energy domain, China is a superpower. Other economic figures tell a similar story. This rise involves increases across a variety of energy forms and fuels. For example, it added 10,000 km of gas transmissions pipelines from 2015 to 2018 and increased the capacity of its LNG regasification terminals by 50 percent over that same period. [89] “China’s INDC,” June 30, 2015, 2, accessed May 12, 2020, https://www4.unfccc.int/sites/submissions/INDC/Published%20Documents/China/1/China's%20INDC%20-%20on%2030%20June%202015.pdf. The United States has never accepted China’s claim to developing-country status, and virtually every current economic indicator belies China’s claim. China’s overall strategy in foreign affairs, including its foreign financial support, overseas investments, and diplomatic actions, has often been oriented to securing energy resources from other regions such as the Middle East and Africa. When it does, China’s economic strength, technological sophistication, and growing influence give it the capacity to take dramatic climate actions and to lead other countries, particularly developing ones, down a low-carbon pathway. China currently ranks first in the world for exports of high-technology products, with such exports alone increasing by 3,800 percent between 1995 and 2016. Its efforts in this regard will shape the global energy and climate landscapes. transition periods, United [63] Feng Hao, “China Releases 2020 Action Plan for Air Pollution,” June 6, 2018, China Dialogue, accessed December 31, 2019, https://www.chinadialogue.net/article/show/single/en/10711-China-releases-2-2-action-plan-for-air-pollution. This book discusses selected frontier and hot theoretical and practical issues of international law in the 21st century and in the process of China's peaceful development strategy, such as interactions between harmonious world, ... [41] Vietnam’s average residential consumption in 2016 was 595 kWh/capita (IEA, World Energy Statistics 2018). IEA statistics, accessed February 16, 2020, https://www.iea.org/data-and-statistics?country=OECDTOT&fuel=Energy%20consumption&indicator=Electricity%20consumption. WASHINGTON (Reuters) - U.S. President Donald Trump put pressure on the … The COVID-19 pandemic and the resulting adverse impacts on economic activity will slow China’s efforts to overcome its developing-country-related challenges. Issues discussed include: economics of gender equality, international trade and development; multilateral negotiations on agriculture in developing countries; gender-related issues in the textiles and clothing sectors; international trade ... In practice, it [39], These regional differences in income are reflected in major variations in energy consumption. This is problematic from an emissions perspective given China’s heavy reliance on coal to power economic activity. China has yet to meet the high-quality statistical reporting standards of a typical advanced economy, as reflected in the repeated major revisions made to its basic energy statistics. President Donald Trump signed the "Memorandum on Reforming Developing-Country Status in the World Trade Organization" (Presidential Memorandum) on July 26, 2019, directing the Office of the U.S. Trade Representative (USTR) to stop treating advanced economies such as China as developing countries under the rules of the World Trade Organization (WTO). The dispute settlement system is unable to bring Beijing to book too. The reported approval of 11,400 MW of new coal power plants, as well as an additional 22,400 MW under planning as of May 2020 (nearly three times the total coal-fired power capacity approved in all of 2019) is a worrisome signal in this regard.[80]. Statements Delivered to the General Council by Ambassador Dennis Shea U.S. Although economic tides have risen worldwide since the WTO’s inception in 1995, the WTO continues to rest on an outdated dichotomy between developed and developing countries that has allowed some WTO Members to gain unfair advantages in the international trade arena. [81] The country’s reliance on increasing energy use to fuel economic growth in general and its predilection for carbon-intensive coal in particular—two factors tied to its developing country status—create major challenges in China’s efforts to control and ultimately reduce emissions. [98] Sandalow, “Guide to Chinese Climate Policy 2019,” 53. Ahead of next week’s meetings on trade, the president says the country is taking advantage of global trade rules. Even assuming China can sustain the robust average annual income per capita growth rate of 6 percent (previously forecasted by the IMF for 2020), it will take 15 years to achieve that of Portugal, one of the poorer advanced economies. More countries may also resist giving China the preferential treatment offered to developing countries in future multilateral agreements. This handbook offers guidance on the design of trade policy reform, surveys key disciplines and the functioning of the World Trade Organization (WTO), and discusses numerous issues and options that confront developing countries in using ... [75] Linda Glawe and Helmut Wagner, “China Caught in the ‘Middle-Income Trap’?,” VoxChina, November 22, 2017, accessed November 7, 2019, http://voxchina.org/show-3-55.html. “Global Coal Plant Tracker,” accessed July 18, 2019, https://endcoal.org/global-coal-plant-tracker/summary-statistics/. [123] Chinese tourists spent over $275 billion overseas in 2018. China’s poverty rate has fallen from 66 percent in 1990 to less than 1 percent today,[3] and it has seen major improvements across a variety of human development indicators. [80] “Addition of Greenfield Coal-Fired Power Capacity Has Exceeded That for All of 2019, Experts Call for Caution前五月新增煤电超去年全年, 专家呼吁警惕,” accessed June 11, 2020, https://tech.sina.com.cn/roll/2020-06-11/doc-iirczymk6391706.shtml. South Korea, Asia’s fourth-largest economy, has maintained its developing country status as a member of the WTO since the body’s creation in 1995, mainly to guard its agriculture industry. [110] More than 64 percent of its major cities still did not meet national air quality standards in 2018. This shift in the treatment of China will likely be reinforced by its own efforts to exercise the economic and political influence of a superpower. [12] The authors’ calculations are based on World Bank DataBank GDP, current US$ figures for China and Germany. President Trump wants the World Trade Organization (WTO) to prevent countries like China from labeling themselves "developing," arguing that … US president has asked for changing the WTO rules for changing the developing country status of China. However, for practical purposes, China’s status under the international climate change framework has changed, driven in part by its massive emissions profile and the attendant critical role it will need to play for any successful effort to reduce global emissions. Providing clean cooking has remained a daunting challenge for China. UNCTAD Website, in some WTO Agreements which provide developing countries with longer Reliable statistics are the foundation of sound energy decision-making. China’s heavy reliance on industry to drive its development will likely influence other countries, with attendant energy impacts because industry is energy intensive relative to other sectors. The status of China as a developing country in the WTO. Similarly, the Kyoto Protocol negotiated shortly thereafter did not impose emissions reduction obligations on China as it did on developed countries. ∗ In November 1995, China formally requested to accede to the WTO. The USTR is authorized and directed to publish this memorandum in the Federal Register. [88] UNFCCC, “INDCs as Communicated by Parties,” https://www4.unfccc.int/sites/submissions/INDC/Submission%20Pages/submissions.aspx. Even though China has succeeded in lowering the carbon intensity of its energy mix over the last decade, a much larger decline will be needed to align with a 2oC pathway (figure F.1), let alone the more ambitious goals of the Paris Agreement of “well below 2oC” or 1.5oC. However, its massive economic and energy resources separate it from other countries that have had both attributes, creating a unique hybrid superpower that will have major distinctive impacts on the global energy system. What are the advantages of The website is no longer updated and links to external websites and some internal pages may not work. China has a per capita GNI of less than $10k. By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby directed as follows: Section 1. Development and the World Trade Organization: Proposal for the Agreement on Development Facilitation and the Council for Trade and Development in the WTO, Yong-Shik Lee. 2. D. Energy-Related Implications of China’s Developing Country Attributes China will be playing in the energy landscape not as a poor country seeking resources but as a superpower looking to exercise its influence and impose its preferences. This book will be of interest to students and scholars of international law, particularly in the area of intellectual property rights, international trade, and public policy. The paper examines China’s development position from the energy perspective, drawing on three principal dimensions: (1) the infrastructure and capacity limitations and other structural dimensions inherent in being a developing country, (2) the applicability of the developing country label and its ramifications under climate and other international frameworks, and (3) the impact of a country’s development status on its state of mind and ramifications for its policy approaches and other choices. China’s advancement has also brought uncertainties about both its own path forward and the future international order. China exhibits several of the conditions that tie higher energy demand to economic growth in middle-income (and specifically wealthier upper-middle-income) countries. It is similarly making important strides in improving the cost efficiency of wind turbines and promoting other low-carbon technologies. [97] While some in the United States believe that its wealth and other assets will allow it to weather the negative impacts of climate change, China is not and will not be wealthy enough in time to withstand the negative economic impacts of climate change when they occur. [46] The most recent World Bank data is for 2014 (accessed January 24, 2020) and is calculated on the basis of GDP expressed in “constant 2011 PPP” terms. In this volume, leading scholars in the economics of international trade offer rigorous quantitative analyses of how the institutional design and purpose of the WTO (and its progenitor, the GATT) affect economic development. Sec. [133] Another potential pressure point in the future is climate change. [85] Over this period, China has also grown into the world’s second largest economy. [128] The emergence of China as a hybrid superpower will likely result in developing countries more willingly partnering with state-owned companies and not just the private sector promoted by development agencies. before they are required to fully implement Even as economic activity has started to rebound in the second quarter of 2020, it is too early to quantify the total economic damage engendered by COVID-19. [109] IEA, WEO-2017 Special Report: Energy Access Outlook, October 19, 2017, 69, https://webstore.iea.org/weo-2017-special-report-energy-access-outlook. How China views itself and its challenges and how the international community classifies it carry real-world consequences that can significantly impact how the country manages its energy needs going forward, what fuels it uses, how it interacts with energy and other partners, and the level of its contributions and commitment to climate change mitigation and adaptation efforts worldwide. [55] China Electricity Council, “Data/Statistics,” accessed June 6, 2020, http://english.cec.org.cn/No.110.index.htm and “WEO 2019.”. This follows on a successful 18.2 percent reduction during the preceding 12th Five-Year Plan (2011–2015). qualify as developing countries. While China should maintain its developing country status, if it wants to avoid the ire of the Trump administration and the world community, China should pay back some of the "raise" it got by playing a more active role in supporting the world trading system. In recent years, the WTO's liberalization agenda has stalled in a number of areas. [112] China’s hybrid status gives it a standing and influence within the developing country community that is not enjoyed by the United States or any other advanced economy. Part of the answer is the repeated assertion by the Chinese government that it is a developing country. [64] In 2017, 81.2 percent of China’s population was exposed to PM2.5 levels exceeding the WHO’s Target-1 value, with even higher percentages exposed under the more stringent WHO standards. Concerns about sustaining robust economic expansion are also taking place within an overall global development context that has pointed to the challenge for middle-income countries specifically to sustain robust growth rates. the agreement and developing countries can receive technical [111] China’s economic might enables it to project its vision and preferences internationally, influencing developing countries as well as advanced economies. Only six of China’s regions had per capita residential electricity consumption levels that exceeded the world average; most others not only fell well below the world level, they were also lower than China’s own national per capita residential average. Institutions, such as the United Nations, generally use economic and social indicators to evaluate a country’s development status. Several examples follow. IEA, “Access to Clean Cooking,” accessed April 4, 2020, https://www.iea.org/sdg/cooking/. [96] See, for example, NDRC 国家发展和改革委员, China’s National Climate Action Plan 中国应对气候变化国家方案. UNWTO, “International Tourism Highlights, 2019 Edition,” 15, accessed June 5, 2020, https://www.e-unwto.org/doi/pdf/10.18111/9789284421152. China’s standards of living, and energy poverty, vary significantly across the country’s different regions [37] and between urban and rural areas. [12] This basic economic relationship helps explain the perspective that China should not be categorized as a developing country meriting preferential treatment. US president Donald Trump criticised China for engaging in unfair trade practices by taking advantage of its ‘developing country’ status in World Trade Organisation. While China has succeeded in its transformation from a low-income country into a hybrid superpower, its prospective journey from middle-income status to that of an advanced economy may take many years if not decades to navigate, with vast uncertainties and unforeseen obstacles (as exemplified by the COVID-19 pandemic). There are also geopolitical and other risks, both foreign and domestic, that can impede China’s future economic growth, as illustrated by the prolonged U.S.-China trade war and the conflicts in the Hong Kong Special Administrative Region. 3. [84] David Sandalow, Guide to Chinese Climate Policy 2019, Columbia University Center on Global Energy Policy, 12, accessed April 20, 2020, https://energypolicy.columbia.edu/research/report/guide-chinese-climate-policy. Even though China has cut the carbon intensity of its energy mix by 5 percent since 2013 (see later figure F.1), its energy consumption increased by 10 percent and CO2 emissions rose by 4 percent. Residential electricity consumption per capita was only 382 kWh/capita in 2009. Statista, “Forecasted Sales Volume of Cars in China from 2018 to 2024,” accessed December 21, 2019, https://www.statista.com/statistics/224573/forecast-for-the-number-of-passenger-cars-sold-in-china/. Absent the type of short-term economic contraction caused by the COVID-19 pandemic, emissions can only drop if the rate of decarbonization is greater than the growth in energy consumption. Per capita energy consumption generally increases with per capita income in low- and middle-income countries, [43] and this has been the case for China (figure C.3). Moreover, many of the world’s most advanced economies have used developing-country status as an excuse not to comply with the most basic notification requirements under WTO rules, depriving United States traders of vital trade data. [28] Several energy indicators are now being tracked by the UNDP in connection with the Sustainable Development Goals and the Multidimensional Poverty Index. Electricity is another area where many households face developing country conditions. unilateral preference schemes of some of the developed country members China is also abusing its rights and privileges within the institutional set-up of the WTO, both by claiming developing country status and by being tardy in its transparency and notification obligations. The government and domestic elites are increasingly positioning China as a country that not only controls its own destiny (rather than being subjected to foreign forces) but also asserts its influence abroad. China’s economy will face strains in replacing older higher-emission plants and other incumbent carbon-intensive energy assets while simultaneously expanding its energy infrastructure. China refuses to give up ‘developing country’ status at WTO, despite Trump administration pressure. China will need to secure larger amounts of all fuels, excluding coal. For example, the government’s program to encourage households in Beijing and the surrounding regions to switch from coal to gas was weakened by low-income households in certain rural areas switching back to burning coal because it was more affordable.[60]. (Mason and Lawder 2019) Trump argues […] What are the expected benefits and disadvantages of joining? What changes is WTO membership likely to bring to China’s economy in the future? These are the question this paper will address. Found inside – Page iIn this book, Mavroidis and Sapir propose a third approach. Coal represented about 58 percent of China’s overall energy mix in 2018, providing 64 percent of power generation. China also claimed developing country status in 2001 upon joining the World Trade Organization and has resisted efforts by the Trump administration to … Found insideThis book looks at the country's reform process, its past successes and future challenges. As a result, there has been less of a focus on China’s prerogatives under the “developing country parties” label and more on the importance of China taking action to control its emissions and impact global climate change efforts. [54] For example, total electricity final consumption in the OECD was 10,331 TWh in 2010 and 10,352 TWh in 2017. The following is a summary of the main findings: China has experienced a remarkable economic expansion over the last 40 years. Government apprehensions about economic growth and related concerns about energy security and affordability have arisen against the backdrop of China’s rising dependency rates on oil and gas imports, which exceeded 70 percent and 45 percent in 2019, respectively. China’s developing country attributes affect its efforts to manage climate change in several ways, including the nature of its obligations under the international climate change framework and its ability to reduce emissions. However, other members can challenge the decision of a member to make Its increasing weight and proactivity as a hybrid superpower will shape the global energy landscape in the years to come. China is building an extensive advanced ultra-high voltage transmission network, totaling more than 30,000 km. [21] National Development and Reform Commission 国家发展改革委 and the National Energy Administration 国家能源局, “Energy Technology Innovation Plan of Action 2016–2030 能源技术革命创新行动计划 (2016–2030年),” April 18, 2016, http://www.sic.cas.cn/zt/zscq/zlzs/zcwj/201704/P020170418529908067670.pdf. The destination for energy commodities. Since joining the WTO in 2001, China has continued to insist that it is a developing country and thus has the right to avail itself of flexibilities under any new WTO rules. [136] J. Nakano, “Greening or Greenwashing the Belt and Road Initiative?,” CSIS Commentary, May 1, 2019, accessed April 20, 2020, https://www.csis.org/analysis/greening-or-greenwashing-belt-and-road-initiative. This book is an invaluable examination of the changing patterns of developing country participation in international trade. This book examines the novel challenge for developing countries to upgrade and optimize their industrial structure and trade composition by stimulating genuinely innovative and competitive industrial strength. (a)  If, within 90 days of the date of this memorandum, the USTR determines that substantial progress has not been made toward achieving the changes described in section 2 of this memorandum, the USTR shall, as appropriate and to the extent consistent with law: (i)   no longer treat as a developing country for the purposes of the WTO any WTO Member that in the USTR’s judgment is improperly declaring itself a developing country and inappropriately seeking the benefit of flexibilities in WTO rules and negotiations; and. Since joining the WTO in 2001, China has continued to insist that it is a developing country and thus has the right to avail itself of flexibilities under any new WTO rules, he argued. Its extensive foreign assistance program is raising anxieties in the capitals of many economies, notably Washington. 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