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Disaggregating China Inc

Pekingology

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Centralization Over Transparency in Trade Negotiations

China's entry into the WTO initially appeared as a significant threat to domestic industries and bureaucratic structures, leading to fears over foreign competition and pressure from external scrutiny. This resistance stemmed from concerns about lowered tariffs and the impact of cheaper imports on local sectors, particularly agriculture. High levels of bureaucratic discretion also contributed to reluctance in adapting to a more transparent negotiation process. The central government’s decision to reduce participation in trade negotiations proved crucial, as it allowed for more effective progress and negotiation outcomes. This approach reflects a broader pattern in global trade negotiations where secrecy often facilitates agreement amidst diverse sectoral interests.

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