UBS Warburg warns on declining company profits after China joins WTO

WTO will benefit China long term, but in the medium term Chinese companies will see shrinking profits due to more competition, says Vincent Chan, UBS Warbug''s head of China economics.

Although joining WTO will have undoubted long term benefits, in the short tem accession will make things tougher for China, says Chan. For example, China's share of world output will decrease to 5.21% in 2005 compared to 5.3% it could have had if the country stayed out of WTO.

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