Join AmCham Shanghai for an author series on China, Trade and Power by Stewart Paterson on Tuesday, November 27th from 9:00 to 10:30 AM at the AmCham Shanghai Conference Center. Stewart Paterson, an equity researcher, strategist and fund manager, recently wrote a book with this title and will speak more about it at the event.

On 11 December 2001, China acceded to the World Trade Organization (WTO). China's WTO membership was backed by Western governments who believed that its economic integration would lead to democratic capitalism in the communist country. It was also strongly supported by Western multinationals in anticipation of labour cost arbitrage and access to China's vast domestic market. But policymakers in the West clearly miscalculated the size of the impact of China's entry into the WTO and severely underestimated the ability of the Communist Party of China (CPC) to capitalize on this new opportunity.

From the perspective of the CPC, economic engagement with the rest of the world has been an unmitigated success. Living standards in China have risen and the new prosperity has reflected well on the Party, its leaders and their policies. But it has also cemented power with the CPC as they bask in the glory of economic success, the exact opposite of the stated aim of Western engagement. In less than a decade following WTO entry, China has emerged as a global economic superpower. The WTO has failed to ensure trade was conducted fairly, showing they were not prepared to deal with China. Worse, China's mercantilist model is now held up as being a viable alternative to the Washington Consensus.

This period of engagement with China has had a debilitating impact on Western democracies and economies. Although the theory of free trade is compelling, the actual practice is less so. Well-defined 'mutual benefit' needs to be the guiding principle of economic interaction with China in the future.

Agenda:

09:00 Registration & Networking

09:15 Welcome Remarks

09:20 Presentation by Stewart Paterson

10:10 Open Discussion/Q&A

10:30 Session Ends

This event is supported by the Hinrich Foundation​, a Hong Kong based non-profit organization dedicated to promoting sustainable global trade. The Hinrich Foundation sponsored the book to promote a reasoned and informed debate on the economic relationship between the West and China, to help create stronger institutions and better rules of engagement for improving global trade.