China became the 143rd member of the World Trade Organization (WTO) today.
This marked the end a marathon battle for accession and will send the nation on a long and uncertain journey towards wholesale economic reform.
China and its 1.3 billion people joined the global commerce club at the stroke of midnight following a 30-day waiting period which began when a WTO meeting in Qatar approved Chinese accession. The negotiation process began in 1986.
The country has already moved a considerable distance away from fully planned communist economics, and WTO membership seems certain to push it still further into the turbulent mainstream of the open market.
"China will take an active role in the new round of multilateral trade negotiations of the WTO and hopes to play a positive and constructive role along with other members," said a statement by China's Ministry of Foreign Trade and Economic Cooperation.
But China's cabinet admitted only hours after WTO entry became final that much of the country's economy was still in turmoil. Despite efforts at reform, the economy is still plagued by rampant counterfeiting, fraud and protectionism.
Analysts say although some sectors such as textiles, footwear and electronics could gain under freer WTO trading rules, others could be devastated. Banking, insurance and heavy industries such as steel and petrochemicals are expected to sustain heavy shocks.
To underline the potential difficulties, official figures showed today that growth in industrial output had slowed to 7.9 per cent year-on-year, the lowest rate for 10 months. This means China could be facing WTO entry while its economy is simultaneously hit by a global slowdown.
AFP