China and WTO: Chinese Cultural Traditions in the WTO Context
Rivista Trimestrale Mondo Cinese, (August 2005)Abstract
China's accession to the WTO represents a goal achieved after nearly
fifteen years of exhausting negotiations. A special precautionary
instrument, the Transitional Review Mechanism (TRM), was included
in the Protocol of China's Accession to the WTO, as requested by
the US and supported by the EU. The TRM has the objective of monitoring
and enforcement of implementation of WTO commitments, promoting transparency
and the exchange of information in trade relations with China. China
is lowering the expectations of some of the WTO members for the outcome
of the TRM. It follows that the WTO members' participation in the
review had declined in favour of bilateral negotiations which result
in the best means to overcome many problems in China's WTO compliance.
It is necessary to try to understand if there are comprehensive and
justifiable reasons for China to delegitimize the multilateral system
at the WTO in general and in the TRM context. According to some scholars,
the general Chinese behaviour not in favour of the TRM could be explained
with reference to the Chinese cultural tradition, where the best
way to resolve the disputes was through mediation and conciliation.
China is a high-context society, where the central role is played
by collective entities and groups and not by individuals. A key element
in the Chinese mentality (such as in other Asian, Middle East and
South American countries) is the concept of preserving group harmony
and maintaining one's public image. The best behaviour is to try
to avoid any direct confrontation, such as bringing a lawsuit.