Paper short abstract:

The aim of this paper is to analyse China’s trade policy. Especially it will discuss the significance of the WTO and preferential trade agreements for China as a platform for pursuing its trade interests.

Paper long abstract:

The current state of China's trade policy stems from the reforms initiated in 1978, which fundamentally transformed it. The PRC abandoned its earlier policy of self-sufficiency and tight control of foreign trade and capital flows in favour of opening up of the economy and integrating it with the global economy. The crowning achievement of this process was China's accession to the World Trade Organization (WTO), which contributed considerably to the country's current position in global trade.

With the escalating crisis of the Doha Round negotiations, China made the same decision as other countries to take actions towards obtaining access to foreign markets through free trade agreements with selected economic partners. The aim of this paper is to analyse the measures taken by China in order to liberalise trade in the context of dysfunctionality of the mulitilateral trade system. The paper is divided into two essential parts. The first part discusses the significance of the WTO for China as a platform for pursuing its trade interests, while the second one identifies the reasons why the PRC establishes free trade areas and describes the evolution of the Chinese strategy towards preferential trade agreements.