ABSTRACT
Our analysis suggests that the employment impact on China of accession to
WTO will be mixed. The degree of domestic and foreign competition varies
from industry to industry. Many Chinese industries are already globally
integrated and competitive, e.g., electronics, textiles and clothing and household
appliances. These industries will continue to be competitive in the global market
although controversy surrounds the future of textiles and clothing. Industries
enjoying protected domestic market (e.g. automobiles) will face fierce global
competition once tariff reductions are implemented. Such industries will have to
accelerate the process of restructuring to attain competitiveness. At least initially,
they are likely to incur substantial transition costs. Inefficient firms in these
industries will most likely disappear with possible adverse employment effects.
