China and international tribunals: Onward from the WTO

This chapter explores changes in China's stance toward international third party adjudication since it joined the World Trade Organization (WTO) in 2001. It addresses the following questions: Is China's growing participation in WTO dispute settlement indicative of broader acceptance of international adjudication, or is it an anomaly, as some scholars claim? How can China's pattern of acceptance of international adjudication be explained? Is it, as rationalist approaches might suggest, a product of cost-benefit calculations, or is it a socialization/norms-based dynamic that would imply a longer-term trend and wider acceptance of international adjudication? The answers to these questions can provide important insight into China's integration into the global system. When China acceded to the WTO, as part of the treaty package and like all other members, it was required to accept a formal dispute settlement mechanism (DSM) with judicial tribunals, compulsory jurisdiction, and binding judgments over the broad range of issue areas covered by WTO law. Given its longstanding rejection of international adjudication, the fact that China agreed to grant WTO courts adjudicative authority marked a dramatic departure from its past policy; indeed, it impacts one of China's most sensitive foreign policy objectives: preventing outside interference in its internal affairs. Still, it remained uncertain whether China would in fact choose to actively participate in WTO dispute settlement. And initially, China avoided panels by settling out of court when sued and by not initiating independent complaints. Yet since 2006, China's participation in WTO dispute settlement, as both respondent and complainant, has grown considerably. This demonstrates a new willingness to let international courts make determinations pertaining to highly sensitive domestic matters, such as censorship, copyright infringement, and subsidies. The chapter builds on the argument that China's increasingly proactive participation in the WTO dispute settlement system signals a critical development in its attitude to international tribunals, from rejection to acceptance. Moreover, participating in WTO adjudication has put China on a trajectory of accepting international adjudication in other international forums, both economic and non-economic.