Essay: Australian Investment in China

Sample Essay

The accession of China into the WTO has come around as the result of over two decades of reforms (Anderson & Goldstein, 2008). China has brought about modifications in its legal framework to ensure that trade and investment barriers are being brought to their minimums. This has been done to make sure that WTO guide lines are being followed. Needless to say, WTO guide lines have been designed to ensure that the trading environment in the country allows for a direct increase in foreign investment.

This has served to not only encourage an increase in the inflow of Australian investment into China, but has also attracted a host of countries towards investment in China into sectors that were considered to be of secondary importance previously. This should allow for not only the strengthening of the Chinese economy but the already thriving economy will also allow for the investing party to reap benefits that will encourage more investment into the economy. As has been demonstrated through the past, Australia has welcomed Chinese investment and allowed for the creation of jobs and mutual research and development projects. Recent relaxation and standardization of Chinese legalities in accordance with the WTO have paved the way for China to no longer remain isolated because of rigid trading procedures. An example can be seen in the Free Trade Agreement. The WTO has been designed to allow fair trade and membership of the WTO allows for closer interaction with more countries in sectors that had not been previously tapped. Hence, it can be inferred that the Free Trade Agreement and all measures and agreements of the same nature taken in the future will serve to only increase the growth of the Chinese economy and the Australian economy in particular.

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