Petit, Marine
[UCL]
Defraigne, Jean-Christophe
[UCL]
The different elements of the question are first analyzed individually. The role and the functioning of the WTO are explored in the first part. The importance of the organization in our globalized economy is highlighted, but also the crisis it is undergoing. The second part focuses on competition policies. It appears to be an important element to address in the WTO given its link with international trade. However, not much is done currently to address competition issues at international scale. Some developments since the failed negotiations on this matter could trigger new negotiations. Among other things, markets are more and more globalized, knowledge and experience in this field are now stronger, and business practices undermine efforts made to lower barriers to trade and investment. Yet, numerous aspects remain controversial. The objective of the third part is then to present some elements related to the Chinese economy, which need to be considered to understand the Chinese competition policy. Foreign companies complain about interventionist policies and practices and the trade distortions generated by SOEs and national champions. Given China’s rise as a leading trading nation, its industrial and trade policies have a significant impact on all WTO members. It raises concerns for its competition policy. This aspect is explored in the fourth part. China’s Anti-Monopoly Law (AML), enacted in 2008, represents a major step towards a more competitive economy. Nevertheless, numerous criticisms are still expressed as to the special treatment granted to SOEs and state monopolies in industries deemed nationally important, the lack of transparency and predictability, and the asymmetric enforcement of the AML towards foreign firms compared to domestic firms. The telecommunications industry is analyzed, which indicates that in spite of significant progress, some sectors are still dominated by anticompetitive practices. All the elements gathered in the different parts are then taken into consideration to suggest a personal answer to the initial question. A possible scenario is that China agrees to relaunch negotiations as this would be positive for its image, but that during the negotiations it strives to make the agreement the least obstructionist possible. As for the other members’ position regarding the creation of an international framework for competition rules in the WTO, there seem to be strong reasons to support new negotiations. Indeed, China’s interventionist industrial policies give rise to a number of anti-competitive practices. The deficiencies in China’s competition policy seem however to matter more for developed countries than for developing countries. The topic of international cooperation in competition policy is a long-standing one, so there is clearly a willingness to go further on this topic. Yet, negotiations were previously more dominated by developed countries. In the current circumstances, the resistance from developing countries could prevent other members to bring the topic back to the table of negotiations, unless they benefit from concessions in other areas. In case the deadlock in the WTO cannot be overcome, or if members prefer to address competition issues in another framework (probably the ICN), China’s competition policy could lead countries to look for increased cooperation outside the WTO.
Bibliographic reference |
Petit, Marine. How could China's competition policy impact negotiations on an international framework for competition rules in the WTO?. Louvain School of Management, Université catholique de Louvain, 2017. Prom. : Defraigne, Jean-Christophe. |
Permanent URL |
http://hdl.handle.net/2078.1/thesis:10902 |