Developed Countries' Cap-and-Trade Border Measures: China's Possible Reactions.

Certain developed countries are exploring the possibility of imposing border measures to address the issues of “competitive disadvantage” and “carbon leakage” caused by asymmetric climate change policies in different countries. This article examines whether these border measures can satisfy the chapeau requirement¹ under Article XX of GATT, which is probably the most significant procedural hurdle under the WTO framework. Furthermore, this article takes stock of China's domestic actions to combat climate change as well as their potential effectiveness, and then analyses the motivations behind those actions.² After that, this article probes into China's potential advisable reactions towards these possible border measures, including China's domestic institutional building. [ABSTRACT FROM PUBLISHER]