The Existing WTO Rules Addressing the Problems and Their Weaknesses
This Chapter will examine the current WTO rules that are relevant to address the various advantages granted to SOEs and the special WTO rules that are applicable to China and its SOEs. In general, these rules fail to regulate adequately advantages granted to SOEs. Section 1 examines the rules that discipline financial advantages granted to SOEs in the areas of trade in goods, trade in services, and trade-related investment. Then it examines the rules that discipline monopolies and exclusive rights granted to SOEs in the above three areas, as well as rules that discipline regulatory advantages granted to SOEs in the three areas. Last, it examines the special rules agreed to by China in its accession to the WTO with respect to advantages granted to SOEs. Finally, the purposes of the rules will be explored in order to illustrate the limitations of these rules.