China's role in WTO downfall

The world is standing on the precipice of a trade war that Europe has in its crosshairs, according to an article by Mathias Döpfner, the chairman and CEO of media giant Axel Springer, published on Politico. 

In the article, Döpner presents a critical viewpoint on the World Trade Organization (WTO), arguing that it has become ineffective and even counterproductive in regulating global trade. The author contends that the WTO, once designed to foster free trade and economic cooperation, now enables non-democratic actors, particularly China, to manipulate the system for their own advantage.

The WTO, established in 1994 as an evolution of the General Agreement on Tariffs and Trade (GATT), was intended to create fair and reciprocal trade policies among its members. However, it has failed to uphold its core principles, particularly in preventing China from exploiting its status as a "developing country." This classification, which lacks a formal definition, grants China unfair advantages such as extended implementation deadlines and market access benefits. Despite being the world’s second-largest economy, China continues to claim these privileges, further skewing the trade balance.

The article argues that China has systematically violated WTO rules through forced technology transfers, state subsidies, and market restrictions on foreign businesses. Many international companies seeking access to China’s lucrative markets have been compelled to share proprietary technology, which China has then used to establish dominance in industries such as solar power. The rapid rise of Chinese solar manufacturing, which did not exist before 2005 but now commands over 80% of global production, exemplifies this pattern.

The author also highlights the asymmetry in market access: while Chinese companies can operate freely in Western economies, foreign businesses face numerous obstacles in China. Social media giants like Facebook and Twitter remain banned, and foreign companies struggle to enter key sectors such as telecommunications and finance. China’s Anti-Monopoly Law has been used to penalize foreign firms, as seen in the case of Qualcomm, which was fined nearly $1 billion for allegedly overcharging Chinese competitors.

Another significant point raised is China’s environmental impact since joining the WTO. Its carbon emissions have risen by over 200%, making it the world’s largest polluter. The author criticizes Western nations for outsourcing environmentally harmful production to China, thereby indirectly contributing to the climate crisis while claiming to pursue sustainability goals.

Ultimately, the article argues that admitting China into the WTO was a mistake driven by wishful thinking rather than strategic foresight. The expectation that China would adhere to free trade principles has not materialized, leading instead to economic imbalances and dependencies. The author concludes that the WTO, now paralyzed and ineffective, has outlived its usefulness and should be dissolved.

The author’s viewpoint emphasizes the flaws of the WTO while portraying China as an opportunistic actor exploiting the system. While some of these criticisms are widely debated, the article presents a particularly strong stance on the organization’s failures and the geopolitical consequences of its policies.

By Nazrin Sadigova