China's first loss

Abstract

The China Auto Parts case is a historic one set in the broad context of the political economy and hard-line development policies of China. Through this case, trade policy makers in Beijing learned the lesson of the golden rule of international trade law, which is helping the Chinese Communist Party overcome domestic interest group pressure and get on with the job of reform. China could also learn that World Trade Organization (WTO) dispute settlement provides a good channel through which trade disputes among superpower countries could be solved with efficacy and alacrity. A shift toward consistent non-discriminatory behaviour will help one of the fastest-growing developing countries emerge into a responsible stakeholder on the world economic stage. © 2011 Kluwer Law International BV, The Netherlands.