China and the WTO : the theory and practice of compliance.

Abstract

Since China joined the World Trade Organization (WTO) in December 2001, attention has turned to the issue of whether or not China is a responsible member of the organization and how compliant China is with WTO rules. This article discusses the difficulties faced by China, as a responsible rising power, in trying to adjust itself to global trading norms. It examines the theory of compliance in international relations from the perspectives of neo-realism, liberal institutionalism and social constructivism, and then tests these perspectives by examining the mechanisms used to gauge China's compliance, both bilaterally by the United States and multilaterally through the Dispute Settlement Mechanism and the Transition Review Mechanism of the WTO. The result is mixed: different opinions exist as to how compliant China has been but, on the whole, most monitors agree that China has tried hard to comply with WTO requirements in various areas, though much remains to be done. The most severe tests will come in the next few years when China's financial and service sectors will have to face fundamental changes to the way they operate.