I recommend this terrific article "How the WTO Changed China" by Yeling Tan (Assistant Professor in the Department of Political Science at the University of Oregon) in the March/April 2021 issue of Foreign Affairs. https://www.foreignaffairs.com/articles/china/2021-02-16/how-wto-changed-china
It reminds us that the WTO obligations have integrated China more into the world economy and have changed China and that to a large extent these changes would not have happened without the external pressure of WTO obligations. As with any other WTO Member, the precise way in which WTO obligations and opportunities affect domestic decision making depends on the politics inside the country and in the case of China it is complicated by the existence of different levels of government, national, provincial, city and country. There are different interests within China, some favouring protectionism some favouring trade liberalisation. Yeling Tan's main point is that it is a gross oversimplification to take the views that membership of the WTO has not changed China because the WTO rules don't work with China and therefore we should engage less with China. In fact, she suggests that is exactly what not to do because restricting trade with China and treating China as an adversary strengthens the political influence in domestic politics inside China in favour of the Chinese proponents of protectionism, isolationism and anti-Western positions. One could add that it also detracts from the political influence within China of those in favour of trade liberalisation, domestic reforms and friendly and constructive engagement with other countries that have differences with China. (Yes public choice theory can be used to analyse politics within China!) Just as the WTO has already changed China so will it be the case that further multilateral trade liberalisation in the WTO, even if slow and incremental, will change China some more. To read Professor Tan's article you might need to key in your email address to be sent the full text. It is worth a read.
When so many voices are complaining that it is too hard to cooperate with China, this scholarship is very important. The current difficult trade issues with China mean that we need more engagement not less. We have to see the objective as learning how to be travellers together not being adversaries. An essential part of that is to have dialogue on trade differences in WTO committees, to utilize WTO processes for transparency, and to engage China in negotiations for incremental, multilateral trade liberalization through the WTO in a non-discriminatory manner. It is a real fact of the modern world that every time nations embark on any multilateral negotiation, one of the critical issues is "What do the Chinese think?" (as I wrote some years ago. See Brett Williams ""Australia and China in the World Trade Organization" in Nicholas Thomas (ed) Re-Orienting Australia-China Relations; Ashgate, 2004, at p104) Other nations cannot pretend it isn't so. And where other countries allege that China is breaking WTO rules, or when China alleges other countries are breaking WTO rules, they should use the WTO dispute settlement system to resolve the disputes. Initiating WTO complaints should not be seen as an unfriendly act. It is the method of dispute settlement that all WTO members have agreed to use. It is designed for the maintenance of peace among nations.
