China in the world trading system

This chapter concerns the rise of China as the largest trading nation and the challenges of integrating it into trade agreements in light of the extensive involvement of the Chinese government in its economy. After noting the history of non-market economy participation in GATT, the analysis addresses the security and credibility of China’s market access commitments, China’s industrial policies and state-owned enterprises, and the associated problem of Chinese “subsidies.” It also considers the extensive use of antidumping measures against China and the non-market economy methodology employed by its trading partners in such cases. Additional topics include the issue of “forced technology transfer” and currency manipulation. The chapter concludes with consideration of whether the trading community has sufficient leverage to induce China to accept additional commitments.