Article 25 as an Alternate Way to Resolve the Crisis of the WTO Dispute Settlement Mechanism: A Chinese Perspective

Abstract

The primary purpose of this research is to propose the solution to the current crisis of the WTO dispute settlement system focusing on Article 25 of the WTO Agreement. The Dispute Settlement Understanding is one of the significant successes of the WTO. Recent years, however, have witnessed the difficulties and challenges facing the multilateral trading system along with rising anti-globalization and trade protectionism. The Appellate Body (AB) has been experiencing an unprecedented crisis of dysfunction mainly due to the US’s boycott of appointing the new members. The WTO Members, including China, have thus proposed various reforms in response to the crisis. However, they have not touched the core demands of the US. Because of the imminent crisis that the AB is about to stop operating, China should take urgent action with other WTO members, consider launching a majority voting program, design and use alternative appeal arbitration, and combine international rules with domestic deepening reforms.