context: As China-US trade friction escalates, China is looking for support from multilateral platforms like the WTO. Many of its proposals seek to counter and contain the US. It seems unlikely they will be accepted in this form.
China formally submitted a WTO reform proposal on 13 May 2019. The proposal seeks to break the impasse of appointing judges to the Appellate Body, curb national security exceptions and ban unilateral measures. It proposes notification procedures and multilateral reviews of tariffs on national security grounds, and for affected members to be compensated. China proposes equal treatment for investments by state-owned enterprises and all other firms. It also took positions on reforming other committees, and special treatment rights for developing countries.
Without a dispute settlement mechanism, WTO’s authority and feasibility cannot be guaranteed, says Tu Xinquan 屠新泉 UIBE WTO Research Institute director. With proposals for e-commerce and investment facilitation, China wants reform to address current needs and new developments of international trade and economy, contends Tu. China may have other alternatives besides this proposal, Tu adds.
Absent clear rules, the WTO relies on inappropriate and vague provisions, which harm its effectiveness, says Wang Yuesheng 王跃生 Peking University professor. China has opened up, reduced tariffs and lowered subsidies, but it should not roll over and give up its developing country status, notes Wang, arguing doing so would be unfair to China and other developing nations