When China acceded to the World Trade Organization at the summit in Doha, Qatar, in November last year, it was a significant moment not just for China, but for economies world-wide. It meant the WTO had finally become a truly global organization. With China and Taiwan included, it now covers 144 countries and approximately 90% of international trade. Of course, the most direct impact is being felt in China itself, and Beijing faces some tough challenges if it is to reap the benefits of membership. A central task will be to keep gross domestic product rising throughout the transition period. Unemployment is a real danger ― six million urban jobs need to be created this year ― a rural economic crisis must be averted as farmers' incomes sag, nonperforming loans in the banking sector need flushing out and the stock markets require urgent attention. It's a full agenda, especially set against the backdrop of economic slowdown in the U.S. and Japan. However, to date, WTO membership has not resulted in social unrest and the economy appears to be in relatively good shape. China's manufacturing sector, particularly along its south and east coasts, is world class, spurred by low costs. Foreign investment, too, is hitting all-time highs ― in January, foreign direct investment increased 33% year-on-year to $2.97 billion.
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