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7 - Tackling China’s State Capitalism

WTO Litigation and Trade Negotiation

Published online by Cambridge University Press:  10 November 2022

Henry Gao
Affiliation:
Singapore Management University
Weihuan Zhou
Affiliation:
University of New South Wales, Sydney
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Summary

Chapter 7 is dedicated to a more focused discussion of how to tackle China’s state capitalism in the WTO. The first option is utilising existing WTO rules, especially those China-specific provisions, to bring cases against China, which so far has not happened. This is partly due to the perception that WTO litigation does not work against China, an argument which we refute by referring to China’s good compliance record with WTO decisions. At the same time, we do agree that a more strategic approach should be taken in bringing such cases and proceed to suggest the types of cases that should be brought and how the evidentiary burden could be met. The second option is through trade negotiations. While bilateral negotiations such as the US–China Phase One deal do not really work, there is great potential in multilateral negotiations. Here, we caution against those advocating the exclusion of China in such rule-making efforts and argue that China should be engaged to make the negotiation fruitful. To make the discussions more productive, we also suggest certain guidelines to make sure that China will be more constructively engaged.

Type
Chapter
Information
Between Market Economy and State Capitalism
China's State-Owned Enterprises and the World Trading System
, pp. 154 - 184
Publisher: Cambridge University Press
Print publication year: 2022

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