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China economy
EconomyChina Economy

China risks ‘the legitimacy of the Communist Party’s regime’ without changes, says law professor

  • Peking University law professor He Weifang calls for China to fulfil the commitments it made when it joined the World Trade Organisation in 2001
  • The outspoken critic of China’s legal system made the comments during the ongoing trade war with the United States which has led to an economic slowdown

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Peking University professor He Weifang. Photo: Simon Song
Cissy Zhou

China risks a “downturn that will fundamentally shake the legitimacy of the Communist Party’s regime” if it does not make structural reforms and fulfil the commitments it made when joining the World Trade Organisation, according to outspoken law professor He Weifang.

Central to the ongoing trade war with the United States have been issues raised by US President Donald Trump surrounding forced technology transfer, intellectual property theft and market access, all of which are areas China promised to correct when it joined the World Trade Organisation (WTO) in 2001.

China passed a new foreign investment law this month in a bid to level the playing field for overseas investors and reassure the global community it remains an attractive investment destination, but many other issues including reducing export subsidies, fair treatment for foreign banks and a commitment to join the WTO Government Procurement Agreement have yet to be fulfilled, according to He.
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“The trade war is an opportunity for China. It is not that China has to succumb to the US, but it is time for China to fulfil its solemn commitments it made when it became a member nation of the WTO. If there is no structural reform, China cannot sustain its economic growth and the economic downturn will fundamentally shake the legitimacy of the Communist Party’s regime,” 59-year-old Peking University law professor He told the South China Morning Post in a rare interview.

“There is a strong correlation between current US demands in trade negotiations and the commitments that China made in 2001. Back then, Chinese legislators were excited about the then upcoming law changes, but ultimately nothing definite ended up happening.”

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