The Current Dilemmas in the Reform of the WTO Dispute Settlement Mechanism and China’s Response

The WTO dispute settlement mechanism provides a fair, transparent, and effective means of dispute resolution for international trade. In the current reform of the dispute settlement mechanism, the “paralysis” crisis of the Appellate Body is a core issue, which poses severe challenges to the authority and stability of the global multilateral trading system. The European Union, Japan, and other countries have chosen a temporary appellate arbitration body as a transitional solution, which has limitations while playing a role in resolving disputes. As a responsible major country, China suggests that WTO members enhance the flexibility of negotiations, choose a compromise solution characterized by parallel coexistence, and build a mechanism of “selective appeal procedures” within the existing framework, which not only conforms to the multilateralist strategy but also takes into account global political constraints, providing new ideas for breaking the deadlock of the WTO dispute settlement mechanism.