The WTO at the Crossroads: How to Avoid the China Syndrome?

Abstract

AbstractThe commonplace narrative regarding China's participation in the WTO is that the original expectations have not been matched in subsequent experience. China has not behaved in accordance with the spirit (and sometimes the letter) of its commitments. Reactions by trading partners have been from critical to hostile, and some have even called for a WTO without China, ignoring the boost to international trade that China's accession has provoked. Yet, China's participation in the WTO cannot remain un-addressed. The US almost brought the WTO to its knees largely because of China, and the EU has enacted laws to counteract China's trade expansion. In this short paper, we argue that the solution to the China-issue passes through an addition and re-invigoration of the multilateral trade rules.