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Posted on April 20th, 2012, by

Сhina’s membership in the WTO affected consistently the entire organization and its member countries. In this respect, it is important to lay emphasis on the fact that Chinese economy had considerable advantages compared to economies of developed countries, which actually attracted and still attract foreign investors and provides Chinese goods and services with ample opportunities to compete with products of other countries on the global market. What is meant here is the labor force costs in China and local material resources that are used in production of goods and services. To put it more precisely, the cheap labor force in China decreases consistently the price of goods produced in China. As a result, Chinese goods are cheaper and, therefore, more available to ordinary consumers, especially in markets of developing countries, where Chinese goods compete successfully with goods produced in developed countries and even replace them. For instance, the world toy industry is dominated by Chinese companies[1].

However, it is important to underline that China pays a lot of attention to the scientific progress and the development of high tech and knowledge-based industries. In this respect, China has already started to compete with leading world powers, such as the USA, Japan and the EU. Taking into consideration the low cost of labor force influencing the price of Chinese goods and services, their competitive power is very significant on the world market.

Today, there still remains the problem of quality of Chinese products, but China gradually overcomes this problem and the quality of Chinese goods and services steadily increases. Hence, China increases its competitive potential even more that naturally raises the problem of the expansion of Chinese companies, Chinese products and service worldwide that can put other companies and their products and services in a disadvantageous position.

[1] Wei, Ge. Special Economic Zones and the Economic Transition in China. World Scientific Publishing, 1999, p.188.

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