There are two very important factors that facilitate the China’s membership with WTO and in creating an impact on the overall economic growth. The first factor is the gain from specialism through global trade. In order to achieve this gain, transformations in the composition of outputs are made. By decreasing tariffs and increasing the overseas products in the domestic markets, the overall utilization for the total products will also increase. By further enhancing the level of exports, the level of GDP can also be further increased. Similarly, the second factor in this regard is the gain from enhancement in the overall competence level within every particular industrial division. The cutthroat Competition from overseas products and imports in the Chinese market will compel the local Chinese companies to further enhance their overall level of competitiveness (Tacconelli & Wrigley, 2009).
Integration Legal Framework of China and its affiliation with WTO
The amendment and modernization of the legal system of China since 1978 has certainly been a positive change and has been comprised of several important changes that are included within the legislature of China and for adequate functioning of a highly robust economy. It is a fact that the legislative system in China has not changed and it is highly effective and can not be subjected to any political and legislative influence. Due to this reason, membership in WTO has allowed economy of China to flourish and has propelled domestic and foreign investors to be a part of this thriving economy. Apart from that, individuals and companies settle their commercial disputes in the light of the relevant legal framework and donot adapt any informal mean. Since their membership in WTO, people of China have certainly become law-abiding due to efficient economic activities and other practices that can be used for improvement in standard of living of individuals. Because the economic condition of people of China has improved with the passage of time, they have become more law abiding in this regard.