WASHINGTON—China’s unfair trade practices since joining the World Trade Organization (WTO) in 2001 have harmed industrial innovation in developed nations, causing companies—particularly in North America and Europe—to lose their competitive advantage in advanced industries, according to a new study.
For years, economists and policymakers have said that China’s rapid economic growth and trade expansion after it joined the WTO had a positive effect on the global economy. Any adverse impacts in developed markets were believed to be largely temporary or borne by workers in low-tech industries or certain regions.
