The Protocol for China’s accession into the WTO stipulated certain differential treatment for China, including the determination of normal value in anti-dumping investigations for the transitional period of 15 years. This treatment was authorized by the Protocol in response to concerns raised by other WTO Members at the time of China’s entry into the WTO. Since the transitional period is over in November 2016, there is an argument supporting the grant of market economy status to China, although the Protocol does not require the automatic grant of market economy after the passage of the transitional period. However, China’s recent trade measures, which have been adopted to press another WTO Member to meet its political objective, raise a question as to whether China is indeed ready for market economy status. This article analyzes such case and offers a view on the grant of market economy status to China.

China’s economic success and trade expansion since the 1980s is one of the most important economic achievements, which lifted more populations out of extreme poverty than any other time and place in history. This achievement has been made possible by trade-led development policies successfully adopted by China. China also joined the WTO in 2001, after fifteen years of negotiations with its trade partners, and is subject to WTO legal disciplines requiring the transparency of its trade-related decisions and procedures. This article examines China’s economic reform, which led to its accession into the WTO, and reviews China’s trade and development policies under the WTO. In addition, this article discusses China’s participation in the WTO Dispute Settlement Procedure. There has been a concern as to whether China will be compliant with the requirements under the Dispute Settlement Understanding (DSU). The article shows that China has become an active participant and has maintained well under the terms of the DSU.