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By Xiang An’bo, Research Team on “WTO’s Rules on SOEs Reform: Future Performance and Key Issues”, DRC

Research Report, No.230, 2020 (Total 5974) 2020-9-24

Abstract: The developed economies have reached consensus on WTO’s rules for the reform of SOEs, whereas they hold evident different views on ways of advancing the reform. Specifically, the United States, Europe and Japan have made a most clear and specific joint statement, showing their shared wish and goal in regulating state-owned enterprises through multi-lateral rules. But these three countries hold varied attitudes. The U.S. takes a radical stand and attempts to incorporate the regional and bilateral provisions and agreements on SOEs reform under its domination into WTO framework. Europe and Japan take a milder position and they intend to enrich the WTO rules with “competitive-neutrality” measures, yet still keeping aligned with the US attitude. On the other hand, developing countries are inclined to adhere to multi-lateral WTO rules and opposed to protectionism and unilateralism, without putting forward pragmatic proposals on the issue of SOEs reform. As for China, the reform of state-owned enterprises is a defensive issue within WTO framework. Nonetheless, it could be helpful for China to participate in global economic governance and propel China’s SOEs reform if China could properly adapt to the international economic and trade performance, give targeted support to domestic reforms and get involved in the formulation of SOEs reform measures in line with WTO rules.

Keywords: WTO’s rules on SOEs reform, the SOEs issue, SOEs reform