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.

1. Introduction
2. The US’s Attack on the Appellate Bodyand Dispute Settlement System
    A. The US Concern on the AB
    B. The WTO Members’ Response to Reform
    C. 90-day Trial Limit on Appeals
3. Transitional Rules for the Continued Trial ofOutgoing Members of the Appellate Body
    A. Article 15
    B. Honduras’ Recommendations
    C. Amendment of Article 17.2
    D. The “Precedent “Status of the AB Report
4. The Crisis Response: The WTO Members StartVote or Arbitration to Resolve Disputes
    A. Initiating the Voting for the Election of the AB Members
    B. Problems of the Consensus Decision-Making Method
5. Promoting the Settlement of Trade Disputesby Arbitration: Article 25
    A. Arbitration as an Alternative Dispute Resolution
    B. Designing the Initiation of Appellate Arbitration Proceedings
    C. Initiating the Appeal Arbitral Procedure
    D. Negotiating the Signing of the Arbitral “Arbitration Agreement”
    E. Arbitration Award and Its Implementation
6. Conclusion
References

• Abid Shah Jillani(Zhengzhou University School of Law)
• Ximei Wu(Zhengzhou University School of Law)