World Trade Organisation (WTO) is an international organisation that deals with rules of trade between nations. Different nations with different rules often conflict with each other, especially in international trading. WTO serves as a forum to solve conflicts between countries. It helps to promote peace, save costs, offers constructive solutions to disputes, enhance economic growth, etc. Hong Kong is a member of WTO.

	China and WTO
	Impact

After 15 years of application, China is finally allowed to be admitted as a member of WTO. However, there are still a lot of technical and legal works to be done, China has been negotiating with WTO members in order to reach final admission agreements. 15-member EU and US sought stronger commitment from China to access its markets. China is hoping that it can become a member before the WTO ministerial meeting in November 2001.

China's Benefit

China saw huge benefit in relation to trade and economic liberalisation to its people. The improvement of investment environment will bring a greater inflow of overseas investment. International market access is significant to improving China's technology. WTO's non-discriminatory trading mechanism provides a better international trade environment for China. As a WTO member, the cost to enter foreign market will be lowered. There will be pressure to improve China's enterprises to increase competitiveness, as well as improvement of the legal regulation and enforcement in trade.


Hong Kong's Benefit

China's entry to WTO will bring tremendous business opportunities to Hong Kong. Expanding the economic scale in China can lead to more cooperation opportunities for Hong Kong. Hong Kong can act as a bridge for China to attract more foreign investment. And as an international financial and trade centre, Hong Kong can benefit from the flow of foreign capital in China.

Hong Kong as the Silicon Valley of Asia, is at an advantage to play a significant role in the high-tech development of China. With our well-developed legal framework, and with our motivation to develop a knowledge-based society, Hong Kong can serve as the telecommunications and Internet hub for China. This brings obvious and significant benefits to our IT sector.