China's Opportion To The World Trade Organization

Submitted By psl2017
Words: 2961
Pages: 12
Open Document
Introduction：
After China's accession to the World Trade Organization (WTO), there is a substantial increase in China's foreign trade volume. Specifically in just 5 months since then, China's gross imports and exports have increased by 12.1%, reaching $221.5 billion where imports account for 48% (Money China, 2002). With the leading role of the WTO, China has signed a number of bilateral agreements on trade relations with numerous countries such as New Zealand and Australia on a mutually beneficial basis. In such case, imported products from these countries would have comparative advantages in the Chinese market comparing to those from countries without signing bilateral agreements with China. For example, milk from New Zealand enjoys the Most-favoured-nation tariff rate which is only 5% in 2013, while the rate on milk from the United States is as high as 40% (Wu, 2012). However, the bilateral agreements might create a monopoly situation in some industries to a large extent. In case of the existence of a monopoly, the Chinese government is considering to enact new foreign trade policies targeting to the import products from those less explored countries in order to ensure a fair competition environment.
In this report, we will only analyse the milk industry. Particularly, in order to improve profitability of Chinese companies importing milk from Poland, we have evaluated the barriers which Chinese importers face; then put forward several solutions and evaluate them respectively based on the criteria of time, feasibility, efficiency and acceptability; finally conclude the relative appropriate solution.
Problem statement:
Our goal the government plans to achieve is to acquire higher market share of Poland milk in China market. To get larger market share, combined with the national and international business environment, we find that there are mainly three barriers that we have to tackle with. The first one is that after Chinese government signed FTA (free trade agreement) with New Zealand and Australia, the milk market of China is dominated by these two countries, especially for New Zealand. As a result, Poland milk and other EU countries may face fierce competition with these two countries. The second obstacle is that due to a series of dairy products scandals happened in China recent years, such as Sanlu Poisonous Milk Powder and the milk powder contamination of New Zealand’s Fonterra, China has introduced stricter regulations on the dairy products both overseas and domestically. In 2013, AQSIQ (Administration of Quality Supervision, Inspection & Quarantine) released the Announcement No. 53 and No. 62, which states that overseas dairy products are required to be in line with China’s food safety standards and requirement. Meanwhile, overseas producers also need to submit testing reports for China’s food safety standards. Thus, the complex process of required documents preparation is very time-consuming. It may be a barrier for both importer and dairy producers. The third and the last barrier we want to introduce is the awareness of Poland milk is not enough. As a new entrant to milk market, Poland milk is not that well-known as the incumbent brands that came from New Zealand and Australia. Thus, to get through these obstacles, we also came up with three alternative solutions for Chinese government to take actions.
Solution 1 ：
One solution can be recommended for Chinese government to improve the market share of Poland milk is to sign up bilateral FTA (free trade agreement) with EU which can further reduce or eliminate trade barrier such as tariff, import quota and overly strict regulations on the prerequisite of WTO rules. The imported milk from Poland and other EU countries has been faced with the vigorous competition from New Zealand and Australia. This is mainly due to New Zealand and Australia both signed FTA with China, which significantly help them capture the Chinese market. Especially, the NZ China
Show More

Related Documents: China's Opportion To The World Trade Organization

Business Assignment Essay

http://www.smh.com.au/business/retail/aldi-growth-poses-threat-to-big-two-moodys-says-20150305-13vhv0.html Business Assignment -This Article outlines the growth of discount supermarket Aldi, and its expansion to south and Western Australia. It also shows how Aldi has become a major Australian Supermarket, Using the related to the syllabus points, Business Growth and decline- Growth, Influences of business Environment-Competitive Situation and Types of businesses Classification of business- Industry. These…

Words 388 - Pages 2

Vietnam: Vietnam and Business Environment Essay

has bolstered an active emerging economy. The cultural environment involves religion, customs, and values of the people. In Vietnam these can become a barrier of entry for foreign or unfamiliar prospects. Understanding current economic struggles is also important when deliberating on whether to enter a market. This environment had seemed to be very promising, but has recently seen little success. Finally, analyzing the political environment may help cue in on Vietnams current standing with foreign…

Words 1116 - Pages 5

The Ultimate Merger-Business Meets Architecture

The Ultimate Merger - Business Meets Architecture By Kellé November 2, 2012 TALLAHASSEE, Fla. — Florida A&M University’s (FAMU) facilities management degree program had an accreditation site visit from the International Facility Management Association (IFMA) Foundation recently where the FAMU Facility Management Academic Advisory Council also signed its charter. FAMU now offers a bachelor of science in business administration with a program major in facilities management. This new major…

Words 584 - Pages 3

Walmart Argumentative Essay

Walmart is looking into expanding their business both in the US and across the globe. Recently, in the US, Walmart has begun running out of room to expand their business. The leaders of the company got together and came up with a plan to differentiate their store format. They attempted this with smaller neighborhood markets. These stores would supply less drug and grocery supplies, while continuing to sell a majority of their products. They considered many disadvantages in their beginning stores…

Words 297 - Pages 2

Literature: Management and Humility Michael Jordan Essay

Managers in today’s business world (i.e. Leadership, Total Quality Management, Affirmative Action, Diversity, Human resource Strategy, technological Change, Globalized Competition, Business ethics, Outsourcing, Empowerment, Environment, Culture Differences, and etc.). These issues are forcing a new management style on today’s way of doing business. Give a brief description of some of the elements that should characterize this new Management. (40points) In the current business environment where there is…

Words 310 - Pages 2

Ethics - Mgmt 216 Essay

ethics is defined as a set of moral principles of values. However, business ethics definition focuses on conduct (DeGeorge, 2005). Three ethical issues within today’s environment include work stress, “do the right thing”, and discrimination. Ethics Issues What is business ethics? Business ethics is defined as written and unwritten codes of principles and values that govern decisions and actions within a company. In the business world, the organization’s culture sets standards for determining…

Words 599 - Pages 3

Essay on Ethical Social and Legal Issues of Internet of Things

Ethical, Social and Legal Issues of Internet Although internet of things provides lots of advantages to human beings, there are also some issues that IoT has a bad influence on our daily environments. Some internet users are not aware of the danger waiting for them while using the internet of things recently. In legal perspective, since the internet of things is fairly new, there are so many issues related to the laws by using internet that they still haven’t been solved in society. An example of…

Words 1006 - Pages 5

Examples Of Cover Letter

I am writing to you to express my interest in the above mentioned role that is currently advertised on Seek. I have until recently been employed by the Bendigo Bank for over 2 and a half years in the capacity of Branch Manager for the Templestowe Village Community Bank Branch. I was successful in obtaining this role through my previous work experience and strong credit risk and analytical ethos coupled with my strong leadership and problem solving skills. These skills along with my substantial…

Words 579 - Pages 3

Research Paper On Mobile Commerce

Telecommunications Business Environment (TBE) 2013 ASSIGNMENT QUESTION Strategic Paper on Mobile Commerce Background Mobile network operators in many parts of the World are facing the challenge of how to increase their revenues in the face of steep competition in the marketplace and the increasing commoditisation of bandwidth and data transport services. One potential new mobile product area is that of mobile money. The use of mobile services to transfer sums of money between people without bank…

Words 596 - Pages 3

Sharp Corporation Essay

CORPORATION: BEYOND JAPAN INTERNATIONAL BUSINESS MANAGEMENT TABLE OF CONTENT PROBLEM STATEMENT ……………………..…… 3 ANALYSIS ………………............… 3 DISCUSSION OF ALTERNATIVES ………………………….. 4 RECOMMENDATION …………………………. 5 EXECUTIVE SUMMARY …………………………. 5 CITATIONS ………………………… 7 EXHIBITS ………………………… 8 PROBLEM STATEMENT Sharp Corporation needs a major overhaul of its business model. Sharp’s previous model of…

Words 1644 - Pages 7