Wharton's Franklin Allen: China and the WTO
Episode Description
Ten years after China joined the World Trade Organization (WTO), the country has become the world's largest exporter and accounts for some 10% of global trade. The International Monetary Fund predicts that by 2016, China will overtake the U.S. to become the world's largest economy. How did membership in the WTO help transform China? What will the next decade mean for China and its trading partners? To discuss these questions and others, Knowledge@Wharton spoke with Wharton finance professor Franklin Allen.
Brief Summary
Franklin discusses China's economic growth post-WTO, branding challenges, RMB globalization, and future risks.
Key points
- China's Export Growth. Since joining the WTO, China's share of global exports has skyrocketed from 4% to over 10%.
- Challenges Ahead for China. China faces challenges in building global brands and navigating trade disputes.
- Future of the RMB. China is making strides to globalize the RMB, encouraging trade settlements in the currency.
- The Multi-Polar Financial System. The future may see a shift towards a multi-polar financial system with multiple major currencies.
- China's Economic Predictions. Experts predict China will overtake the US in GDP by purchasing power parity by 2016.
Ask about Knowledge at Wharton
Episode highlights
- China's Export GrowthSince joining the WTO, China's share of global exports has skyrocketed from 4% to over 10%.“China has become the world's top exporter.”0:51Dec 15, 2011
- Challenges Ahead for ChinaChina faces challenges in building global brands and navigating trade disputes.“The main problem is still to build Global Brands.”3:34Dec 15, 2011
- Future of the RMBChina is making strides to globalize the RMB, encouraging trade settlements in the currency.“China has been making efforts to globalize the RMB.”7:24Dec 15, 2011
- The Multi-Polar Financial SystemThe future may see a shift towards a multi-polar financial system with multiple major currencies.“The dollar will lose its primacy as the only currency.”10:16Dec 15, 2011
- China's Economic PredictionsExperts predict China will overtake the US in GDP by purchasing power parity by 2016.“China may become the largest economy in the world.”11:55Dec 15, 2011
Tension
45/ 100Some tension
