U.S.-Chinese Trade: Interface and Lawfare

Abstract

This chapter offers a perspective on the legal aspects of U.S.-China trade relations, focusing on how the rise of China has challenged U.S. perspectives and principles. There are serious issues raised by the interface between China’s state-controlled economy and the U.S. privately-controlled economy. The existing WTO legal rules are not well-designed to manage these issues, resulting in increasing U.S. dissatisfaction.

The Chinese economic and governmental structure is different from that of the U.S., and is not fully suited to the WTO free trade regime due to the extent of state control of the economy. In order to provide a level playing field for U.S. and Chinese enterprises, it will be necessary to develop new disciplines of transparency and neutrality in order to ensure that market-opening agreements are not nullified or impaired.

Keywords: Trade, China, WTO, Dispute Settlement