ENVIRONMENTAL AND TRADE IMPLICATIONS OF CHINA’S WTO ACCESSION

This report provides a preliminary analysis of the potential environmental and trade implications of China's accession to the World Trade Organization (WTO), focusing on industrial restructuring, pollution levels, environmental management, and international trade dynamics.

• China's WTO accession is expected to trigger a significant economic restructuring that could reduce overall pollution levels in the long term. The report suggests a trend where low value-added and labour-intensive industries move from developed nations in Europe, the United States, and Japan to China, then from eastern China to central and western regions, and eventually to poorer regions such as Africa and Indochina countries.
• The impact on the state of the environment is expected to be mixed. While total contaminated water discharges may slightly decrease due to reduced non-point source pollution from grain production, urban air quality is likely to worsen. This decline in air quality is attributed to an estimated 5% to 10% annual increase in automobile purchasing rates following tariff reductions.
• WTO membership provides an opportunity for China to upgrade its environmental management and industry. However, the domestic environmental industry, largely composed of township and village enterprises (TVEs), faces a high risk of bankruptcy if it cannot compete with foreign companies in terms of technology, management, and scale.
• Chinese exports, particularly in labour-intensive sectors like textiles, toys, and leather, are expected to face 'green challenges' in international markets. These include more stringent environmental regulations and voluntary measures, such as the German ban on 108 Azo dye stuff and bans by the U.S., Canada, and EU on untreated wooden packaging materials.
• Increased imports of resource-based products, such as timber, grain, and natural gas, are expected to benefit China's domestic environment by reducing land exploitation and deforestation. However, this may shift the environmental burden to exporting countries, potentially contributing to deforestation in tropical regions and unsustainable resource exploitation in poor countries.
• WTO membership will require China to align its trade and environmental policies with international standards, specifically regarding the Agreement on the Application of Sanitary and Phytosanitary measures (SPS) and the Agreement on Technical Barriers to Trade (TBT). This includes the need for a transparent registration and publication system for regulations affecting international trade.
• Accession to the WTO allows China to utilize the WTO dispute settlement system to resolve trade and environment-related conflicts. The report notes that previous environmental measures taken by foreign governments, such as packaging requirements in the U.S. and Canada, were sometimes inconsistent with WTO procedural requirements regarding transparency and consultation.

APA

Tao, H., & Yang, W. (2000). ENVIRONMENTAL AND TRADE IMPLICATIONS OF CHINA’S WTO ACCESSION. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/china-wto-preliminary-analysis.pdf

Chicago

Tao, Hu, and Wanhua Yang. ENVIRONMENTAL AND TRADE IMPLICATIONS OF CHINA’S WTO ACCESSION. International Institute for Sustainable Development, 2000. https://www.iisd.org/system/files/publications/china-wto-preliminary-analysis.pdf.

Wikipedia

{{cite report |last1=Tao |first1=Hu |last2=Yang |first2=Wanhua |title=ENVIRONMENTAL AND TRADE IMPLICATIONS OF CHINA’S WTO ACCESSION |publisher=International Institute for Sustainable Development |date=September 2000 |url=https://www.iisd.org/system/files/publications/china-wto-preliminary-analysis.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{tao2000environmental, author = {Tao, Hu and Yang, Wanhua}, title = {{ENVIRONMENTAL AND TRADE IMPLICATIONS OF CHINA’S WTO ACCESSION}}, institution = {International Institute for Sustainable Development}, year = {2000}, month = sep, url = {https://www.iisd.org/system/files/publications/china-wto-preliminary-analysis.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }