Wharton's Mauro Guillen: 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 management professor Mauro Guillen.
Brief Summary
China's WTO membership transformed its economy, boosting exports and creating competitive multinationals like Lenovo and Haier.
Key points
- China's WTO Membership Impact. China's entry into the WTO transformed it into the world's largest exporter, increasing its global share from 4% to 10%.
- Emergence of Chinese Multinationals. Chinese companies like Lenovo and Haier have become global players, changing the landscape of international business.
- Financial Sector Challenges. China's financial sector lags behind, facing risks from bad loans and operational inefficiencies.
- Geopolitical Risks for China. China faces significant geopolitical risks due to territorial disputes with neighboring countries.
- Protectionism as a Risk. Protectionism could emerge as a risk, but China is not the most protectionist country among developing nations.
- The Future of the Chinese Currency. Experts discuss the potential of the Chinese Yuan becoming a global currency.
Ask about Knowledge at Wharton
Episode highlights
- China's WTO Membership ImpactChina's entry into the WTO transformed it into the world's largest exporter, increasing its global share from 4% to 10%.“China has just become an export powerhouse.”0:36Dec 15, 2011
- Emergence of Chinese MultinationalsChinese companies like Lenovo and Haier have become global players, changing the landscape of international business.“Chinese multinationals have become global players.”2:24Dec 15, 2011
- Financial Sector ChallengesChina's financial sector lags behind, facing risks from bad loans and operational inefficiencies.“Chinese banks don't have the experience or sophistication.”11:22Dec 15, 2011
- Geopolitical Risks for ChinaChina faces significant geopolitical risks due to territorial disputes with neighboring countries.“China is surrounded by countries that have territorial disputes with it.”13:04Dec 15, 2011
- Protectionism as a RiskProtectionism could emerge as a risk, but China is not the most protectionist country among developing nations.“China is not the biggest offender in protectionism.”18:35Dec 15, 2011
- The Future of the Chinese CurrencyExperts discuss the potential of the Chinese Yuan becoming a global currency.“I don’t think that’s going to happen.”20:09Dec 15, 2011
- Advice for CEOsNavigating the future with China requires understanding its economic landscape.“You need to read as much as you can about China.”22:24Dec 15, 2011
Tension
45/ 100Some tension
