Abstract

Though China did not become a full fledged member of the World Trade Organization (WTO) until the end of 2001, it had been preparing for this for many years, and its adherence marks the high point of three decades of reforms, in particular with regard to trade policy. Such reforms have continued to be carried out at a swift pace since China’s adherence. The country has thus spectacularly reduced its customs tariffs and taken measures to liberalize the sectors of agriculture, industry and services. The agreement over services is even considered to be the most radical process of liberalization ever negotiated under the auspices of the WTO. As a result, the process of adjustment of the chinese economy, a process which has been ongoing for many years, is far from having been completed. Urban households have been the main beneficiaries of this process, whereas the poorest, living in rural areas, are the ones who must bear the costs of a transition which call for corrective measures on the part of the government.