China Establishes WTO Department

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China Establishes WTO Department

The Chinese Government is implementing a restructuring of the bureaucracy in anticipation of the WTO accession. The new Department of WTO Affairs has been endorsed by the top leadership, and will be ramped up within the next few months. The unit is being set up as part of and under the direction of the Department of International Trade & Economic Affairs under the Ministry of Foreign Trade and Economic Co-operation.

Its mandate will cover all matters associated with the WTO on both the domestic and international fronts. To be comprised of six divisions, the Department of WTO Affairs is expected to handle major tasks involving China's participation in the multilateral trading system. A key responsibility area will be the management of China's involvement with the WTO dispute settlement process.

Up to now, outside research institutes have provided advice to the Chinese government on the WTO accession. However, upon accession, it is preferred that China's official representatives be able to secure policy direction predominantly from within the governing structure. One unfortunate development that may signal serious unresolved domestic issues associated with the WTO is that, unlike almost all other departments, the Department of WTO Affairs will not have subordinate branches at the provincial and lower levels of government. Accordingly, this will almost certainly complicate the central-provincial dialogue on WTO issues. This could lead to significant management challenges because the Department of WTO Affairs will have a major liaison and coordination function within the central bureaucracy, and between China and foreign institutions. Its responsibility for leading the revision of China's regulatory framework as it relates to the WTO will likely encounter subnational resistance given the existing make up of the department.

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