At last minute, China decides to join WTO talks on US$25 trillion e-commerce market
- Beijing overcomes reluctance to join negotiations, citing a ‘deep crisis’ in multilateral trading system
- Some in the US fear it may also seek to water down any eventual outcome
China will join a group including the United States and the European Union in negotiating new rules to cover the US$25 trillion e-commerce market.
The EU and 47 other members of the World Trade Organisation have launched the discussions, according to a Friday statement. If successful, a digital trade accord hashed out through the Geneva-based trade body would establish a baseline international regime for 21st century trade and reduce cross-border hurdles to e-commerce.
China, which for years has heavily restricted use of the internet inside its borders, had resisted joining the talks until Thursday, raising concerns over the language in the statement advocating a “high standard outcome”, according to people familiar with the talks who asked not to be identified because the discussions were private.
In a statement, China’s ambassador to the World Trade Organisation Zhang Xiangchen said China decided to join the negotiations out of concern over a broader crisis surrounding the WTO, which has been coming under attack from US President Donald Trump’s administration.
“The multilateral trading system is in a deep crisis,” he said. “Against this backdrop, the launching of e-commerce negotiation will in a significant way help reinvigorate the negotiating function of the WTO, and shore up confidence in the multilateral trading system and economic globalisation,” Zhang said.