The mainland is also seeking to increase its influence through involvement in multilateral organizations. In the context of increasing global interdependence China recognizes that it cannot develop in isolation. China will continue to search for internal solutions for its problems. Underlying factors in economic relationships It is expected that China will continue to grow economically and build on its achievements in terms of economic growth and reduction of poverty. Economic reform will progress, but the next stages will be potentially more difficult to implement and are likely to create significant losers, thus the Chinese leadership needs fortitude to see reform through.
China faces huge challenges as reform progresses and economic transition takes place.
These will impact its relations with foreign business. There is some way to go before China becomes a member of the World Trade Organization. Some outstanding difficulties need to be resolved to conclude bilateral market-access and multilateral negotiations. Once China becomes a member, it will face new challenges of implementation, which could impact trade with neighboring partners, for instance, in relation to dispute settlements, anti-dumping and fair pricing. The development of technological capacity will be increasingly driven by the new Chinese private sector.