Chinese accession is the greatest leap in the history of the organization," Lamy said when he formally welcomed Shi Guangsheng, China's minister of foreign trade and economic cooperation, into the WTO fold this week. Speaking as the representative of the world's biggest trading bloc, Lamy had earlier warned Beijing that Europe would be monitoring Chinese trading policies very closely from now on.

"This has been a long and arduous negotiation, one that took a full 15 years to complete. In retrospect, the history of the last 15 years of negotiations has also been the history of China's own reform process, its gradual opening up, and its integration into the world economy. The phenomenal seven percent compound average annual growth rates, which are expected to continue in the future, testify to the success of the government's economic policies," Lamy said in a welcoming speech this week delivered as the representative of the 15-nation EU, the world's biggest trading bloc.

For a country with 1.2 billion people China, represents one quarter of the populations of the 144 WTO nations. The terms of accession mean that China will be legally bound to abide by the full range of market access obligations that apply to member nations. Known as schedules of commitments, these obligations cover tariffs and non-tariff measures applicable to agricultural trade and industrial goods and services. WTO officials said Beijing had been required to set out how it promises to fulfill these obligations relating to its current and planned trade and investment regimes during the first years of membership.

"These temporary derogations from normal WTO rules are intended to reflect the unique challenge of incorporating China into the world trading system," an official said. "This is an economy in the midst of transition from state ownership to the market-based system; a country that has taken many measures to introduce market economics, but where certain features of a state led economy still prevail. Most notably, the protocol affords other members special protection for their own industries against damaging surges of exports from China."

For the major Western trading powers in Europe and North America, and the rest of Asia, China's entry, he said, would signal an enormous gain in enforceable rights with no significant change in their own commitments toward China. In turn, the only obligation other members of the WTO have is that they must accord China so-called permanent MFN, or "most favored nation" status. In the case of Chinese trade with Europe, for example, it means the phasing out of remaining textile import quotas and other China-specific trade restrictions by the year 2005.

A European expert on the trading relationship with China, said Beijing had made a high standard of commitments to open its economy to foreign imports, investors and businesses. "One of the reasons the talks lasted so long was the concern of the EU and others that China's entry should in no way lower the average standard of openness to trade in the WTO," the official said. As for the benefits, these include vastly improved access of other member nations to the Chinese market. Import tariffs and other non-tariff restrictions will be sharply and permanently reduced. And investments by foreign companies will take place in a more attractive, more predictable business environment.

Bill Jordan, Secretary-General of the International Confederation of Free Trade Unions (ICFTU) said China would be monitored closely on its application of workers rights under the new WTO regime. No longer, he said, should Chinese products produced by underpaid laborers be allowed onto the market. "How," he asked, "can goods produced in India carrying the price of democracy compete with exports from China which are cheaper because Chinese workers do not enjoy the same rights?" A question European officials said they were confident could be overcome as China becomes more open and benefits from EU technical assistance.