What is the influence of China's ascension to the WTO over the Chinese retail market?
In late 1998, China began permitting foreign retailers form joint ventures with local retailers to set up shops in 30 provincial capitals and major cities. However, barriers to direct entry remain high. Furthermore, the sales arms of foreign-invested manufacturing firms are restricted to selling products that they produce in China.
Most of the restrictions against foreign investment in the retail sector will be eliminated as a result of China's ascension to the WTO. Within three years of China's accession, all restrictions on equity, geographic areas, or on the numbers of retail outlets for foreign investment in this sector will gradually be removed.
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