Study On Strong Coupling Between The WTO And The Internationalization Of Chinese Enterprises And Its Strategic Adaptation

This dissertation focuses on the strong coupling between the WTO multilateral tradingsystem and the internationalization of Chinese enterprises. It is aimed to prove and specify therealality, internal mechanism and theoretical source of the strong coupling relationship and, basedon this point, to present the direction of strategic adjustment and adaptation for Chineseenterprises in their future process of internationalization under the ecological competitionenvironment shaped by the WTO.For the purpose for this study, the concept of internationalization of enterprises was definedin Chapter II as that an enterprise engage in international business practice which include theimport and export trade and the inward and outward foreign direct investment, and theinternational management practice which include strategy, organization and personnel under theinternational game rules of the WTO multilateral trading system. GATT/WTO develops from theeconomical globalization history which is based on the internationalization of enterprises, and alsofrom a “Two-Level Games” model (among WTO-government-enterprises). The model clarifiesthe approach of enterprises engage in multilateral trade negotiation and the WTO affairs. Itconcludes that the current WTO multilateral trading system assures a leveling play, stablecommercial expectations and lower transaction expenses in an open, stable and predictablemanner.The history of relationship between China and the GATT/WTO multilateral trading system isunique. During the67years since1948, the history can be divided into two stages of30yearsbounded in1979when China began to reform and opening up. The first30years was a long"unconnected period" followed a very short-term period of "original contracting party" of the GATT, and the post30years was a recombination period. After China had established the basicnational policy of reform and opening-up and the goal for transition to the socialist marketeconomy, the development process of Chinese enterprise internationalization, the negotiationsprocess of China’s rejoining/entering into the GATT/WTO and the creation process of the WTOmultilateral trading system parallel as "three rivers cocurrent flow", and converge historically withthe newest round of economic globalization tide, and finally resulted from the strong couplingrelationship between Chinese enterprise internationalization and the WTO multilateral tradingsystem under the “trebling fit” in timing, idea and strategy in recent20years, and at the same timeproduced strong "four-dimensional resonance effect” on trade, investment, institution and idea.However, the two-way strong resonance effect is asymmetry, which is said that the effects of theWTO to Chinese enterprise internationalization are strong on all the four dimensions, but theinfluence of Chinese enterprise internationalization to the WTO multilateral trading system isrelatively weak on the two dimensions of institution and concept. In another word, on the twodimensions in the ex-import trade and foreign direct investment (FDI), the WTO has promote therapid rise of China’s foreign trade and investment, while the rapid rise of China’s foreign trade andinvestment also brought a huge influence to the structure of economy and trade of world and othermain WTO members. China experienced large-scale rapid adjustment of the institutions of trade,investment, and intellectual property protection, and fast integration into "the WTO rules andstandards" for entry into the WTO and carrying out of its commitments. Of course, because Chinahad been long-term free from the multilateral trading system, and is as a backward developingcountry, Chinese enterprise internationalization cannot make a big contribution to the constructionof the WTO system and the shape of international concept.In this dissertation, empirical analysis has been carried on to the coupling relation betweenthe internationalization of Chinese enterprises and the WTO. Granger causality test results showthat the Chinese enterprise internationalization and the WTO has at least one-way causalrelationship, that is, the WTO is Granger cause of Chinese enterprise internationalization.According to the empirical results from the coupling coordination evaluation model, the couplingdegree index show that the high coupling condition between the Chinese enterpriseinternationalization and the WTO exist basically, and the coupling coordination degree index alsobasically reflects the moderate or above strength coupled coordination state exists between the two,although there are certain differences of the coupling among all provinces and22cities of YangtzsRiver Delta.This dissertation tries to raise the heterogeneity theory of internationalization of Chineseenterprise. It further explains the six aspects of the heterogeneity theory, including theheterogeneity of regime, the transition of regime, the large-scale of big country, the late-developing of internationalization, the sharp rising of development, and dominance of SOE.The first three aspects can be considered as exogenesis heterogeneity, while the last three aspectsas endogeny heterogeneity. It concludes that among the six aspects of the heterogeneity and theWTO trading system has a close interaction. China has its own characters which make China hasto face a very complex situation in its process of accession to the WTO and produce finally astrong resonance effect between internationalization of Chinese enterprises and WTO multilateraltrading system.This dissertation discusses a lot factors that could challenge the internationalization processof Chinese enterprises, including the dynamic trend of WTO developemet and some relative newissues, such as trade and environment, investment, competition policy, government procurement,so-called TRIPS-plus, competitive neutrality, TPP and so on. It also analyses the main problemsthat Chinese enterprises are facing in its internationalization process by the SWTO(Strengths,Weakness, Threats and Opportunity) system analysis method, including the unbalance of inwardand outward internationalization, the lowerization trap, lacking in technological innovation, thetrade protectionism, and need for upgrade and transition.At last, this dissertation presents suggestions on Chinese enterprises’ WTO strategy. Theprincipal of the WTO Strategy is multilateralism, and its core goal is to maintain and carryforward WTO multilateral trading system and to make it sure to function well, so as to make theWTO trading system can intensify and assure the internationalization of Chinese enterprises. Itfurther suggests that China should develop industry association’s role and improve the cooperationbetween governments and enterprises.Conclutions and results of the empirical and theoretical analysis on the strong couplingbetween the internationalization of Chinese enterprises and WTO in this dissertation as well as thestrategic adaptation recommendations thereby can contribute to understand the issues of the WTOand Chinese enterprise internationalization, and to provide reference to the government andenterprises to participate in process of multilateralization and internationalization.