China and the WTO: the theory and practice of compliance

Since China joined the World Trade Organization (WTO) in December2001, attention has turned to the issue of whether or not Chinais a responsible member of the organization and how compliantChina is with WTO rules. This article discusses the difficultiesfaced by China, as a responsible rising power, in trying toadjust itself to global trading norms. It examines the theoryof compliance in international relations from the perspectivesof neo-realism, liberal institutionalism and social constructivism,and then tests these perspectives by examining the mechanismsused to gauge China's compliance, both bilaterally by the UnitedStates and multilaterally through the Dispute Settlement Mechanismand the Transition Review Mechanism of the WTO. The result ismixed: different opinions exist as to how compliant China hasbeen but, on the whole, most monitors agree that China has triedhard to comply with WTO requirements in various areas, thoughmuch remains to be done. The most severe tests will come inthe next few years when China's financial and service sectorswill have to face fundamental changes to the way they operate.