China and the commercial principle of reciprocity

Reciprocity is a fundamental principle of the rules-based world trading system in which countries extend proportional terms of market access.

According to an analysis by the US Congress, China is expanding overseas in many sectors that remain highly restricted or closed to foreign investors at the domestic level (for example, construction, engineering, transportation, communications, and financial services).

This Asian country does not offer reciprocal access to the market for the rights it ensures in other countries. Instead, the analysis adds, it creates openings in foreign markets through deals-ready state financing offers and integrated delivery of projects through a consortium of companies, which may be attractive to governments looking to accelerate approval of Projects.

China

Projects can facilitate trade, but often on China’s terms and through the supply chains it controls.