ABSTRACT

The debate surrounding China’s ability to meet the requirements of the

World Trade Organization (WTO) accession package (‘‘compliance’’) has tended to focus on two levels: whether the Chinese government’s commit-

ment is genuine, or whether (presumably committed) leaders responsible for

agreeing to the accession package can enforce its WTO commitments by

potentially recalcitrant economic ministries and local officials – especially in

the face of social and economic dislocations caused, in part, by WTO-related

adjustments. While this discussion about compliance has been important,

there are deeper issues raised by the academic literature on comparative and

international political economy that cast a different light on the nature of Chinese accession. The purpose of this chapter is not so much to bring to

bear new empirical information about China’s WTO compliance but, rather,

to examine some key ideas from the broader political economy literature

that can help frame our understanding of the relationship between the

WTO as a globalizing force and the domestic politics of China’s trade

policy. Two parts of the political economy literature – international trade

policy and regulatory policy – offer much for us to consider. This chapter

attempts to take a modest step in this direction. The first of these two literatures – on international trade policy – takes an

‘‘outside looking in’’ perspective. Specifically, this literature sets forth crucial

assumptions about the nature of a country’s behavior in the WTO and

about the behavioral expectations inherent in the WTO as a trade liberal-

ization mechanism. The literature is useful in its suggestion that much about

China’s compliance situation is not unique and, indeed, is accounted for in

the WTO. The second literature addressed in this chapter concerns the

nature of the regulatory state in advanced industrial economies; here, the core interest is in both the extent to which ‘‘liberalizing’’ states regulate and

the institutions and means by which they do so. In contrast to the trade

policy literature, the comparative political economy literature draws our

attention to the internal regulatory structures that mediate trade liberal-

ization. The comparative scholarship on regulatory states suggests that

there are wide variations in how industrial economies actually liberalize

their economies – the institutional structures, ideologies, and policy instru-

ments used.