Title: Safeguarding China’s Cross-border Pipeline Projects under WTO Law: Lessons from Two Recent Panel Reports

Author: Zhang Yuanyuan

Abstract: The cross-border pipelines (CBPs) connecting China’s energy consumption market deliver oil and gas from Russia, Central Asia, and Myanmar, and are significant for China’s energy security. However, they face substantial political risks in host states that international legal instruments should mitigate. The WTO regime provides vital international legal protection for these CBPs due to its extensive treaty content, wide membership, and unique dispute settlement mechanism. This article aims to examine the application of WTO law to China’s CBPs and the extent to which the potential risks can be effectively mitigated. In this regard, the Panel Reports in Russia — Traffic in Transit and EU — Energy Package provide important clues and are thoroughly studied. This article concludes that WTO law has great potential in protecting China’s energy security. Therefore, when the WTO is caught in the Appellate Body crisis and faces marginalization, China should continue to firmly support the multilateral trading system (MTS) as well as promote WTO reform and Doha Round negotiations.

Keywords: Cross-border Pipelines, Energy Security, Export Restrictions, Pipeline Transport Services, Energy Market Reform, General Exceptions, National Security Defense, Russia — Traffic in Transit, EU — Energy Package