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China and the WTO

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China's entry into the World Trade Organization (WTO) in 2001 marked a significant milestone in international cooperation, yet its journey has been fraught with challenges, particularly in its relations with the United States. The discord stems from a mismatch between the WTO framework and China's economic model, which has hindered the organization's ability to manage tensions from China's rapid growth. In this context, unilateral pressure from the U.S. and others is deemed ineffective. Instead, Petros Mavroidis and André Sapir argue that thoughtful reforms within the WTO could foster China's cooperation and restore confidence in the system. The WTO, along with its predecessor, the General Agreement on Tariffs and Trade, was built on liberal domestic policies and has previously managed the accessions of socialist nations and major trading countries, but none as formidable as China. The authors assert that for the WTO to effectively accommodate China's geopolitical reality, it must clarify its implicit principles into explicit treaty language. They highlight two main issues: the unfair advantages of Chinese state-owned enterprises (SOEs) and the forced technology transfers imposed on foreign firms seeking access to the Chinese market, proposing specific reforms to address these concerns. In a time of global trade disputes, this exploration provides timely insights into the challenges facing the multilateral system and offers in

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China and the WTO, Petros Mavroidis

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2021
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