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Short-term pain, long-term gains predicted for China after WTO entry
November 30, 1999 BEIJING (CNN) -- After China joins the World Trade Organization (WTO), Chinese car makers are expected to be hit hard by competition from the big international auto firms. But most auto workers in China have never heard of the WTO, let alone considered what it might mean for their jobs. In the countryside, Chinese farmers will be hit hard by cheaper U.S. grain imports. Some will find something new to grow, others will have to stop farming altogether.
And economists agree, there will be a negative impact for China in the short term. "A big impact of joining WTO will be labor problems when we already have high unemployment. As of last year China already had 15 to 16 million unemployed in the cities," says economist Hu Angang. "They ask, 'is it about Americans making money?' I tell them this is a trade off that will benefit everyone in the long run." The tradeoff, advocates say, is more unemployment now, in exchange for more jobs in the future.
Those new jobs are expected to be created by private businessman like Chen Jinyue who says he expects to double his workforce. Chen says WTO membership will make it easier to sell his down jackets abroad. His workers earn just under $100 a month Ð- a decent wage by Chinese standards -Ð but frightening to workers in some other WTO countries. "With such massive economic shifts from farm to city, from state-owned to private enterprise, many Chinese could fall through the cracks. But China's leaders are betting that integration into the global trade system is the only way to fulfill their dream of becoming a world economic powerhouse." RELATED STORIES: China opens doors to more free trade RELATED SITES: World Trade Organization (WTO)
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