ABSTRACT
After a lengthy process of negotiating to join the World Trade Organization, China became a member on 1 December 2001. Although all countries had to approve China’s membership, some of the most contentious bilateral talks occurred with the EU and with the US. In addition to the access they sought to Chinese markets for goods and services, both were concerned about a potential flood of products from China. In particular, worries abounded that in sectors where state-owned enterprises still dominated production, trade would be determined by government preferences and priorities, not by comparative advantage or market forces. Organized labor in the United States vehemently opposed Chinese entry, as it feared that competition with such a labor-abundant country would drive down US wages.
