Chatham House: China and the WTO

By joining the World Trade Organization in 2001, China agreed to dispute settlement processes and compulsory adjudication. “While in other areas, most notoriously the law of the sea, China has been reluctant to accept the decision-making power of international courts and tribunals, its WTO practice has shown that China can accept the jurisdiction of an international judicial body, accept its findings and embrace its procedures,” explains Wim Muller for Chatham House. “It has become an enthusiastic member of the WTO, frequently using the DSM to resolve international trade disputes speedily and efficiently.” Muller warns that China could follow US trends and resistance to global trade. China and the US are the only permanent members on the group’s appellate body for dispute settlements. Pullback from the world’s two largest economies could reduce trade stability and accountability for the WTO’s more than 160 members. A lingering dispute for China with the US and the EU is its non-market status – allowing measures to prevent market dumping and low prices intended to decrease competition. China had expected the status to expire after 15 years, but the EU and the US argue China’s government-controlled economy does not warrant true market status. US rejection of WTO processes could deter China’s acceptance of adjudication and settlement procedures. – YaleGlobal